New York: Promising a “bold, new beginning” towards a bright future of Citigroup Inc., chief executive officer Vikram Pandit has said concerns about its financial health have been put to rest by the US government’s stress test results.
After conducting a stress test on 19 American banks, the US government has said 10 of them, including Citi, need to raise a total of $74.6 billion for “capital buffers” in the event of a deeper economic slump. Citi has been asked to raise $5.5 billion.
Citi, which has received $45 billion from the US government so far as financial assistance, has exuded confidence about getting additional capital from the market, and has said it would not need any further Federal help.
“The actions we have taken and the plans we have announced, together with the results of the stress test, should put questions about our financial strength behind us,” Pandit wrote in an internal memo.
“I am looking forward to a bold new beginning for our company,” he said.
In the memo, which is posted on the New York Times website, the Citi chief pointed out that the stress test was more critical for Citi than other financial institutions. The outcome, he said, “has created the transparency and confidence that we all need to move forward”.