Both Citigroup (C) and Bank of America (BAC) are down over 7% as the Brexit vote overshadows the strong CCAR results. Both large financials are back to recent lows despite signs that both banks will increase capital returns. Citigroup had the better stress test results with common equity Tier 1 level at over double the Fed requirement of 4.5%. Even Bank of America came in with 8.4% under a scenario where the unemployment rate soars to 10%. The end result is that both banks have overflowing capital and need to return capital to shareholders to lower capital levels and reward shareholders. Last year, Citigroup got $7.8 billion share buybacks approved and the 2016 results suggest that at least $10 billion isn't out of the question. With the stock tumbling to a market value of $120 billion, the bank is approaching capital returns of 8% of the market cap. One key investor desire is to see the dividend rise above the meager $0.20. A doubling of the dividend appears possible and a big catalyst for the stock. Similar results are expected for Bank of America. Both stocks trade at ridiculous valuation multiples making them extreme steals on the Brexit weakness that will only provide opportunity for cheaper stock buybacks. In addition, the dislocation in UK banks might provide opportunity for the US banks to take global market share. Disclosure: Long C