WSJ: Citi Needs "Up to $10 Billion" in Capital

Submitted by
CalculatedRisk on Fri, 05/01/2009 - 4:01pm (52 comments)
Nemo wrote on Fri, 5/1/2009 - 4:02 pm

Just $10 billion?

Come on, that's a rounding error.

nades wrote on Fri, 5/1/2009 - 4:04 pm

Is this why the pushed back the stress test results.... interesting...

Nemo wrote on Fri, 5/1/2009 - 4:04 pm

Citigroup said it would realize a loss of $200 million on the transaction

So they can sell assets for a loss and thereby boost capital?

Wow. Wish I could do that.

Tim waiting for 2012 wrote on Fri, 5/1/2009 - 4:04 pm

That's all surely an error of scientific notation. 100 billion to start

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:05 pm

does that cover off sheet debts?

mmckinl wrote on Fri, 5/1/2009 - 4:05 pm

CR ~

" I was expecting a much higher number than $10 billion."

~~~

You're not alone ... that may be the scam ... BS capital requirements ...

TARP III anyone ?

Arbitrage_Macht_Frei wrote on Fri, 5/1/2009 - 4:05 pm

Big Brother, could you spare 100 Billion dimes?

Rajesh wrote on Fri, 5/1/2009 - 4:05 pm

The silly thing about the stress test is the its just a guessing game. They should just add a bank regulation that codifies the 4% TCE standard. Then whenever a bank get to that level it faces specified action.

Rob Dawg wrote on Fri, 5/1/2009 - 4:07 pm

Not enough zeros.

This will only serve to diminish credibility.

Rajesh wrote on Fri, 5/1/2009 - 4:07 pm

They can have a loss and still increase TCE if the loss is less the the goodwill for that asset.

reptillian wrote on Fri, 5/1/2009 - 4:07 pm

Only 10 Billion? Rally on Monday! Got to go to 5$/share! Buy it now or be forever left behind!

Danny wrote on Fri, 5/1/2009 - 4:07 pm

So that's why they're delaying the results...they want to give all the troubled banks enough time to "fix" themselves, so that along with the grim results can come news that the banks are now secure, so the equities market won't drop.

The fact that the Obama administration blatantly cares about nothing but the DOW is really upsetting.

HollywoodHack wrote on Fri, 5/1/2009 - 4:09 pm

Oh

Sandy

well you came and you gave without taking

But I sent you away

oh Sandy

Well you kissed me and stopped me from shaking

And I need you today

oh Sandy.

mmckinl wrote on Fri, 5/1/2009 - 4:09 pm

"does that cover off sheet debts?"

~~~~

last I heard it did ...

CITI has about a trillion off balance sheet ...

girlbear wrote on Fri, 5/1/2009 - 4:10 pm

who is Citi going to sell them to?

metabear wrote on Fri, 5/1/2009 - 4:10 pm

yet another "...according to people familiar with the matter" article.

Tim waiting for 2012 wrote on Fri, 5/1/2009 - 4:11 pm

On auto sales:

“It seems like we’re bouncing around at the bottom of a bathtub,” Chrysler Vice Chairman Jim Press said in a conference call. “We have found the bottom.”

Pay no attention to the source PCE will now fluctuate with gov't spending, stimulus, season, time of day, weather, and mood etc.

Lobbyist Ben Dover wrote on Fri, 5/1/2009 - 4:11 pm

America West Bank, Layton, UT #3

Shine on you Jamie Dimon wrote on Fri, 5/1/2009 - 4:11 pm

Come on baby can I have some more?
Oooh ooh the damage done

mmckinl wrote on Fri, 5/1/2009 - 4:12 pm

"who is Citi going to sell them to?"

They'll just take both sides of a CDS ...

Use different Acct methods for each half ...

Rob Dawg wrote on Fri, 5/1/2009 - 4:12 pm

Easy. Market cap $16.4b. Need $10b? 40% dilution of those people who knew they were at risk.

girlbear wrote on Fri, 5/1/2009 - 4:12 pm

Circling the drain with all the other flotsam and jetsam.....

Tim waiting for 2012 wrote on Fri, 5/1/2009 - 4:13 pm

Lobbyist

Damn do you here that sucking sound. More small-med banks. Makes sense construction loans are going stale.

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:14 pm

america west in UT just closed their doors.....#3

Lobbyist Ben Dover wrote on Fri, 5/1/2009 - 4:14 pm

Hoover or Kirby? I can't tell!

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:15 pm

damn Lobbyist

The Mortgage Pig wrote on Fri, 5/1/2009 - 4:15 pm

Bank Failure 32: America West Bank, Layton, Utah

Tom Stone wrote on Fri, 5/1/2009 - 4:15 pm

How does prince WALL-E feel about this?

nades wrote on Fri, 5/1/2009 - 4:15 pm (in reply to...)

Soylent Green is People thats your cue bro! Smile

Lobbyist Ben Dover wrote on Fri, 5/1/2009 - 4:15 pm

Sorry I got lucky. Maybe I should go buy a lottery ticket today.

mmckinl wrote on Fri, 5/1/2009 - 4:16 pm

"So the latest of the "when in doubt, do more" syndrome is that the Fed is trying to get in front of an imminent commercial real estate bust by letting banks use the TALF for commercial real estate loans, thereby keeping credit cheap. The reason? That market is ready to go into free fall. Leon Black of Apollo Management, predicts a commercial real estate "back hole" that could deliver as much as $2 trillion in losses. to banks.

Ouch."

Yves Smith

Tom Stone wrote on Fri, 5/1/2009 - 4:16 pm

Saudomized? oil betcha.

Rob Dawg wrote on Fri, 5/1/2009 - 4:16 pm

"America West Bank, Layton, Utah?" How many times has "America West" been used?

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:17 pm

in our local paper this week they had a list of all delinquent taxes and the owner and properties... unreal the number of HB companies on that list with empty lots....

EvilHenryPaulson wrote on Fri, 5/1/2009 - 4:17 pm

What kind of problems will this $10bn solve, compared to what $10bn optimally used could solve?

$10bn keeps Citi alive long enough to print next quarter's report on glossy paper with 2 colors

scone wrote on Fri, 5/1/2009 - 4:17 pm

off sheet debts = off track betting

splat wrote on Fri, 5/1/2009 - 4:18 pm

$10 bill today, plus another $10 bill for the next 10 days Wink

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:18 pm

america west ..gold rush, prosparity...ironic chicken coming home to roost.... mortgage pig meet ironic chicken

nades wrote on Fri, 5/1/2009 - 4:19 pm

when did ten bill become such a trivial amount....

Nemo wrote on Fri, 5/1/2009 - 4:19 pm (in reply to...)

Rajesh --

They can have a loss and still increase TCE if the loss is less the the goodwill for that asset.

Sure, assuming they haven't written down the goodwill to where it belongs...

It just seems a little weird to me that they could sell something for less than carrying value and increase their capital. Basically implies they were carrying it at a seriously inflated valuation.

Lobbyist Ben Dover wrote on Fri, 5/1/2009 - 4:21 pm

Whats the worry Citi bank is profitable!

montas ankle wrote on Fri, 5/1/2009 - 4:22 pm

I didn't realize capital levels were "negotiable"

rb wrote on Fri, 5/1/2009 - 4:22 pm

She was once, twice, three times a bailout. And I love her.

Gavshire Hathaway wrote on Fri, 5/1/2009 - 4:24 pm

If the stress tests say they only need $10B, then they are a total crock of shit. Which we already knew because the numbers were optimistic. But I agree with RD that they need another zero, at least

blonderengel wrote on Fri, 5/1/2009 - 4:26 pm

10 bil?

That's nuttin'...Hold on...lemme get my other purse.

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:28 pm

10 BB large or small depends on who you ask...

Gibbs says 100MM is large while 8BB is small

http://townhall.com/columnists/JonSanders/2009/04/30/obamas_revenue_relativism_-how$100_million_is_large_when_$8_billion_is_small

Fiduciary Doodie wrote on Fri, 5/1/2009 - 4:29 pm

OK who at goldmman sachs is hiding outat Citi....????

km4 wrote on Fri, 5/1/2009 - 4:31 pm

Am sick and tired of this shit.

So far team Obama has done nothing to readily address or materially change so The Triumph of the Banking Oligarchs continues at huge taxpayer expense.

He either wakes the fuck up or will be a 1 term wonder boy !

FFDIC wrote on Fri, 5/1/2009 - 4:43 pm

Meredith Whitney nominated for Nobel Prize in truth telling...

DCRogers wrote on Fri, 5/1/2009 - 4:48 pm

They have to act like it's a large number, and it hurts, so it seems real to the public when they pay it out of the loose change they find in lounge chairs in the executive club.

goadam wrote on Fri, 5/1/2009 - 6:28 pm

So nice to worry about billions being stolen instead of a Pandemic.

Shnaps wrote on Fri, 5/1/2009 - 6:51 pm

Up to $10 billion? with a "B"?

Hooohoohawhaaaa.
Oh my gawd - poopedmyself!!

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