Citi is down more than 5% today after failing the Federal Reserve's annual stress test.
The Fed released the results of its stress test of major banks operating in the U.S. on Wednesday afternoon following the closing bell, and Citi was the only major U.S. bank to fail.
The Fed said Citi's "2014 capital plan reflected a number of deficiencies in its capital planning practices, including in some areas that had been previously identified by supervisors as requiring attention, but for which there was not sufficient improvement."
"We think Citi's qualitative fail is about bad processes, not a bad business model," wrote Derek De Vries, an equity analyst at UBS, in a note to clients.
"This is an important distinction because processes can be fixed, while business models are difficult to change."
De Vries expects the "qualitative fail to be reversed in less than 12 months." He also maintains his Buy rating on the stock.
This five-day chart show's today's sharp sell-off:
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