Word: banke
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Dates: during 2000-2009
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When the results of the government's financial stress tests were announced last week, Citigroup seemed to have dodged a bullet. The bank, long thought to be in the worst shape among the nation's largest lenders, was said to need just $5.5 billion in capital in order to return to health. No small sum, to be sure. But amazingly, what Citi was required to raise was less than half the $13.7 billion that competitor Wells Fargo was told to come up with. And far less than the nearly $34 billion that regulators said Bank of America needed to bolster...
...little deeper, though, and Citi's stress-test results look more like an F than the B+ the bank seemed to get. Among the 19 banks the government probed, Citi was found to have the lowest common capital ratio, which the government said was a key measure to protect against insolvency. What's more, Citi also got credit for a capital conversion it has yet to complete. Strip that out, and the amount of capital Citi needs balloons to nearly $63 billion, more than any of the other banks tested. (See pictures of the dangers of printing money...
...These days, the government's moves seem anything but light-handed. By early June, the banks that were deemed to need capital will have to submit their money-raising plans to regulators. Government officials have said they intend to make management changes at the banks if the plans are deemed inadequate. Despite the relatively small $5.5 billion Citi was told to raise, the stress test deepened concerns about the bank. That means the hurdle Citi will have to jump in order to prove its management is up to the task could be higher than for the other banks...
...Citi's exam also included a $58 billion credit titled "Other Capital Actions." The credit is for the conversion of preferred stock that Citi says it plans to do but has not yet completed. Among the other 18 banks that were examined, only one other, Bank of America, was allowed to include a similar credit in the results of its stress test. And at $1.8 billion, BofA's credit was far less a factor in the outcome of its test than Citi's was. Since the stress tests, other banks have announced plans or have been able to quickly complete...
...during Rosenberg's funeral on Monday. In the 18-minute tape, a seemingly calm Rosenberg, sitting behind a desk and microphone, alleges that Colom, the First Lady and two associates were involved in murder, corruption and money laundering. The group, he says, filtered public funds through a state-owned bank for personal gain and to finance drug traffickers. Rosenberg then claims that after Khalil Musa, a prominent businessman and bank board member, had learned of the Coloms' scheme, Musa and his daughter were shot to death in front of a shopping center in April. Rosenberg says the President signed...