Citi Stress Calculations

Tier 1 Capital: 118.8
A: Tier 1 Common Capital: 22.92

B: Risk‐Weighted Assets: 996

C: Total Estimated Losses: 104.7

D: Resources Other Than Capital to Absorb Losses: 49.0

Target SCAP: (0.06*B) - A + C - D
Target SCAP: (0.06*996) - 22.92 + 104.7 - 49.0 = 92.6

Citi already has 29.0 from “Capital Actions and Effects of Q1 2009 Results”
and 58.1 from “Other Capital Actions, including impact of preferred exchange offers”

Need to raise: 92.6 - 29 - 58.1 = 5.5

Comments

[TuckerC:]

Noticed that Citi owns the naming rights to the Mets new stadium ... they should sell those rights off ... clearly like many of their mortguage customers, they can't afford the house that they bought.

May 08 08:46 AM

[C.elder:]

I wonder why the Stress tests imposed by this Govt on the banks use a completely different set of assumptions on economic growth etc for 2009 and 2010 than this same Govt are telling the American people to expect over the same period?This Govt is telling the American people that growth will be very positive in 2010 and possibly even positive in 4Q 2009.Yet the stress tests they are forcing on the banks are hugely negative with terribly negative growth,huge unemployment rises,enormous defaults on debt etc?It seems to me that either this Govt is lying to the American people about the real economic scenario(hence the hugely negative stress tests),or it is trying to find an excuse to take over the banks(or it would be applying the same economic scenario it is telling the American people to expect).
This Govt cannot have it both ways-there can only be one economic outcome....so which is it?Economic disaster(as per the stress tests) or return to growth(as per the offical outlook)?

May 08 10:07 AM

[citishark:]

on the point. The "elder" you go the wiser you become!

But again: governments do not lie, specially this one that "pledged" to be "transparent and open".........

May 09 03:40 PM

[whisperonth...:]

This gov't also pledged change, which is what we will be left with. And of course governments lie. No one ever believes that they'll lie when they vote for these people, and everyone is surprised when they discover the truth, finally. "Write your congressman. Write your senator. Write your whatever..." and you really think they will do anything other than vote the way they were going to vote anyway? HA. If YOU had voted, would you have given AIG that money? Or GM? Both? Neither? Change. It's what we believe in, but not necessarily anything more than what we'll find in our pockets when all this is over. That's OUR stress test.

May 10 12:09 AM