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ETF News

Citigroup confident in capital levels - WSJ

NEW YORK (Reuters) - Citigroup Inc C.N executives are comfortable with the largest U.S. bank's capital levels, and aren't seeking new funds from outside investors, the Wall Street Journal said Tuesday in its online edition, citing unnamed people familiar with the matter.

A spokesman for the New York-based bank did not immediately return a call seeking comment.

Citigroup shares fell to a nine-year low on Tuesday after Sameer al-Ansari, head of the Gulf investment agency Dubai International Capital, said the bank needs more funds, even after raising some $30 billion of capital from investors including Abu Dhabi, Kuwait, Singapore and Saudi Prince Alwaleed bin Talal.

“It’s going to take more than that to rescue Citi,” al-Ansari told a private equity conference.

Also weighing on the shares was a research note in which a Merrill Lynch & Co analyst slashed his earnings forecast for the bank, citing a possible $15 billion write-off this quarter related to mortgages.

In afternoon trading, Citigroup shares were down $1.17, or 5.1 percent, at $21.92. They earlier fell as low as $21.23.

Reporting by Jonathan Stempel; Editing by Tim Dobbyn

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