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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (202157)	5/15/2009 6:58:00 AM
From: RockyBalboa	Respond to of 306849

Inside Citi's Stress Test: More like an F than a B+ When the results of the government's financial stress tests were announced last week, Citigroup seemed to have dodged a bullet. The bank, long thought to be in the worst shape among the nation's largest lenders, was said to need just $5.5 billion in capital in order to return to health. No small sum, to be sure. But amazingly, what Citi was required to raise was less than half the $13.7 billion that competitor Wells Fargo was told to come up with. And far less than the nearly $34 billion that regulators said Bank of America needed to bolster its capital by in the next six months. ... Among the 19 banks the government probed, Citi was found to have the lowest common capital ratio, which the government said was a key measure to protect against insolvency. What's more, Citi also got credit for a capital conversion it has yet to complete. Strip that out, and the amount of capital Citi needs balloons to nearly $63 billion, more than any of the other banks tested. time.com