Citigroup may need to raise US$10b

Source: Agencies | May 4, 2009, Monday |

Print Edition

CITIGROUP Inc may need to raise as much as US$10 billion to meet the government's increased capital standards for banks outlined in its stress tests, according to a report.

The New York-based bank is negotiating with the Federal Reserve and may need less capital if it is able to convince regulators of its financial health, The Wall Street Journal said on its Website. The report cited people familiar with the matter.

A Citigroup spokeswoman said the bank had no comment on the story.

On Friday, the United States government pushed back its expected release date of the stress test results to Thursday from today as regulators negotiate with the banks over the findings.

Fed officials had said all 19 banks that underwent the stress tests will need to keep extra funds beyond what's now required in case losses on loans and other assets continue to climb. That was a signal some banks would have to raise more cash.

Initial results showed Citigroup and Bank of America Corp would be among that group, sources had said.

Finance

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Citigroup may need to raise US$10b

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