NEW YORK — Citigroup Inc. may need to raise as much as $10 billion to meet the government’s increased capital standards for banks outlined in its stress tests, according to a report late Friday.
The New York-based bank is currently 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 Web site. A Citigroup spokeswoman declined comment on the story.
On Friday, the government postponed its expected release date of the stress test results to Thursday from Monday, as regulators negotiate with banks over the findings.
Last week, Fed officials said all 19 banks that underwent the stress tests will need to keep extra capital on hand beyond what’s now required in case losses continue to climb. That was a signal some banks would have to raise more cash. Initial results indicated that both Citigroup and Bank of America Corp. would be among that group, sources told The Associated Press earlier this week.
Banks will have up to six months to raise money from private sources, Federal Reserve Chairman Ben Bernanke has said. If they can’t, the government would provide aid.
The New York-based bank is currently 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 Web site. A Citigroup spokeswoman declined comment on the story.
On Friday, the government postponed its expected release date of the stress test results to Thursday from Monday, as regulators negotiate with banks over the findings.
Last week, Fed officials said all 19 banks that underwent the stress tests will need to keep extra capital on hand beyond what’s now required in case losses continue to climb. That was a signal some banks would have to raise more cash. Initial results indicated that both Citigroup and Bank of America Corp. would be among that group, sources told The Associated Press earlier this week.
Banks will have up to six months to raise money from private sources, Federal Reserve Chairman Ben Bernanke has said. If they can’t, the government would provide aid.
by the associated press
No comments:
Post a Comment