First, Fed officials said almost all the top 19 banks well exceeded requirements for quantity and quality of capital right now. BUT, to meet the potential needs identified under worse case scenarios, regulators want to see substantial buffers above the levels set out in minimum capital ratios, reports FT.
This means that even some of the biggest banks will be asked to raise more capital by US authorities.
Further, according to FT, people familiar with the situation said regulators indicated that Citigroup might need more capital beyond a planned conversion of preferred shares into common stock that will give the government a 36 per cent shareholding.
If Citi has to raise more funds from the government, the authorities might force out Vikram Pandit, its chief executive. However, they added that no decision had been made and each bank had a week to discuss the results of the tests with regulators
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