July 15, 2012 / 1:58 PM / in 5 years

Citi CEO rejects UK bank reform: report

LONDON (Reuters) - Citigroup (C.N) Chief Executive Vikram Pandit was quoted as saying on Sunday that Britain’s plans to separate retail and investment banks were unnecessary as a series of measures to safeguard against failed banks was already being put in place.

Citigroup's CEO Vikram Pandit gives an interview on the floor of the New York Stock Exchange June 18, 2012. REUTERS/Brendan McDermid

Pandit told Britain’s Sunday Telegraph newspaper that the requirements for resolution planning if a bank goes bust, as well as safety being addressed through more capital and liquidity meant ring-fencing plans were not needed.

In June Britain told banks to separate their domestic retail operations and gave savers a higher priority in the event lenders hit trouble under reforms aimed at safeguarding taxpayers.

The newspaper said that Citi would address the bank’s exposure to the Libor scandal during its second-quarter results presentation on Monday, but did not elaborate further.

Pandit also said that the bank would seek regulatory permission by the end of the year to make a substantial return of capital to shareholders.

Reporting by Neil Maidment; Editing by Susan Fenton

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