U.S. controlled large bank holding companies with Texas ratios exceeding 20% included Citigroup ( C), Wells Fargo ( WFC), SunTrust ( STI), Fifth Third ( FITB), Marshall & Ilsley ( MI) and Huntington Bancshares ( HBAN).
Citi on Friday reached an agreement with the government to convert up to $25 billion in preferred shares issued to the Treasury into common stock. This will significantly boost Citi's tangible common equity ratio, but no matter how high the tangible equity ratio gets after the move, the stake of the company held by non-government shareholders hasn't changed. Citi also announced it would offer to convert roughly $27.5 billion in preferred and trust-preferred shares sold to other investors. But since the company also announced it was suspending dividends on those securities, preferred shareholders might be facing a very difficult decision.