Citigroup Plan to Return Capital Fails Stress Test

[Parsad]

According to breaking news on Bloomberg.  Maybe Pandit should give some of his compensation back until they do pass!  Cheers!

[Parsad]

Also according to breaking news on Bloomberg, Suntrust's capital plans failed the stress test.  Moynihan is looking smarter and smarter for not asking for a return of capital.  Cheers!

[ERICOPOLY]

1) regulators tell BAC last August that they are undercapitalized (presumably under the stress scenario)

2) BAC raises capital

3) ask for a return of capital?

 

It doesn't fit the storyline if that rumor is indeed true about last summer.

 

[PlanMaestro]

All of them will pass eventually Parsad, all. Looking at the details of the stress and besides this being a doomsday scenario there is some weird stuff going on (consumer loans). Both Citi and Suntrust are more than OK. 

[Uccmal]

Well C probably would pass if Pandit only took 3 million instead of 53 million, considering his "awards" come out of tier one.

[PlanMaestro]

Well C probably would pass if Pandit only took 3 million instead of 53 million, considering his "awards" come out of tier one.

 

Or someone wanted to send a signal for his arrogance ... well deserved.

 

Now, Dimon decided to jump start the Fed announcing the dividend increase. Is someone going to send him a signal too? JPM and WFC numbers were not much better than the rest.

[ERICOPOLY]

page 31 shows Citi with very high loan loss rates at what looks to be about 11%, vs what is roughly 8% loss rate at BofA.

[txlaw]

Well C probably would pass if Pandit only took 3 million instead of 53 million, considering his "awards" come out of tier one.

 

Or someone wanted to send a signal for his arrogance ... well deserved.

 

Now, Dimon decided to jump start the Fed announcing the dividend increase. Is someone going to send him a signal too? JPM and WFC numbers were not much better than the rest.

 

Unless I'm reading this wrong (and I haven't looked at the report in detail yet), of all the real commercial banks (not including AXP, COF, BK, etc.), WFC's numbers are actually at the top . . . after USB, FITB, and BBT, and tied with PNC.  Only with proposed capital actions (i.e., buybacks and dividends) do the stressed ratios become comparable to the other guys. 

[PlanMaestro]

Unless I'm reading this wrong (and I haven't looked at the report in detail yet), of all the real commercial banks (not including AXP, COF, BK, etc.), WFC's numbers are actually at the top . . . after USB, FITB, and BBT, and tied with PNC.  Only with proposed capital actions (i.e., buybacks and dividends) do the stressed ratios become comparable to the other guys.

 

You are referring to the capital ratios txlaw? That is a good point, I was looking more at the loan loss rates. The assumptions for capital numbers seem to be underestimating the PTPP potential of some institutions relative to JPM and WFC.

[txlaw]

Unless I'm reading this wrong (and I haven't looked at the report in detail yet), of all the real commercial banks (not including AXP, COF, BK, etc.), WFC's numbers are actually at the top . . . after USB, FITB, and BBT, and tied with PNC.  Only with proposed capital actions (i.e., buybacks and dividends) do the stressed ratios become comparable to the other guys.

 

You are referring to the capital ratios txlaw? That is a good point, I was looking more at the loan loss rates. The assumptions for capital numbers seem to be underestimating the PTPP potential of some institutions relative to JPM and WFC.

 

Yeah, I was referring to the capital ratios assuming no capital actions going forward and then assuming capital actions.

 

Haven't looked at PTPP or loss ratios yet.