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More detailed numbers in the Fed results concerned analysts even more. Among the 19 banks, Citi was deemed vulnerable to the deepest losses from its loan portfolios. Even though Citi isn't the largest credit card lender, its losses from credit cards would be $27 billion in the test scenario. Rivals with much bigger credit card portfolios came out with lower losses- $14.5 billion for Bank of America and $21.3 billion for JPMorgan Chase. JPMorgan bank analyst Vivek Juneja downgraded Citigroup's stock, saying that having failed the stress test "hurts management credibility." Juneja said it makes Citigroup look like an "outlier" among major banks. Other banks that passed the stress test announced late Tuesday that they would raise dividends and buy back stock. Both steps put cash in shareholders' pockets and give them a bigger share of profits. Wondering what's in Citi's loan portfolio brings back uncomfortable memories for analysts who cover banks. From mid-2007 through early 2009, including the financial crisis, Citigroup stock lost more than 90 percent of its value as investors tried to figure out how toxic Citi's assets were. Most of those were Citi's investments in complex securities that were based on the real estate market. The bank got two federal bailouts totaling $45 billion, and guarantees worth hundreds of billions more. It posted $40 billion in losses in 2008 and 2009 combined. For a time, it was part-owned by the U.S. government, and it was the last major bank to repay the bailout money, at the end of 2010. Citi said it will submit a revised capital plan later this year, as required by the Fed. At least one shareholder was hoping that Citi would still include a plan to raise the dividend or buy back stock. "Citi should just tweak its plan and ask to return less capital this year," said Anton Schutz, president of Mendon Capital Advisors Corp in Rochester, N.Y., which owns Citigroup shares.
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