NEW YORK (TheStreet) -- Shares of Citigroup (C) are down 1.09% to $55.24 as new Federal Reserve surcharges could put pressure on the bank based on its current capital levels and how much they draw on those sources, Bloomberg reports.
The Fed yesterday unanimously proposed to set tough capital rules for the eight biggest U.S. banks. The measure would be tougher than an international agreement already in place for large institutions, with additional evaluation on how much they rely on short-term wholesale funding as part of their calculation.
The rules will could require capital buffer hikes that range from 1% to 4.5% of their risk-weighted assets. Citigroup would have a capital shortfall if the Fed's additional surcharge exceeds 1.7%, Bloomberg said.
Among the eight U.S. banks on the FSB's list of globally significant firms, JPMorgan Chase & Co. (JPM) ranks as the most systemically important, Bloomberg said, adding, it had the most short-term wholesale funding at the end of September, according to data compiled by KBW.
JP Morgan's $483 billion of short-term funds was followed by Citigroup's $432 billion and Bank of America's (BAC) $407 billion, they added.
Separately, TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: