A reader e-mails with a great point: In his memo to employees today, Citigroup CEO Vikram Pandit notes the following:
Asset quality: The Fed will conduct stress tests for all large banks in coming weeks. We've done our own stress testing using assumptions that are more pessimistic than the Fed has outlined and we are confident about our capital strength.
Which suggests that, when the results of those government stress tests comes back, Citigroup won't need any more capital--that they would, in fact, reject more capital. (Given all the strings attached, why would you accept capital you don't need?)
To paraphrase Seth and Amy: Really, Vikram Pandit? Do you really want to take that one to the bank? (Even a well-capitalized bank?) Keep in mind this is the same day the Journal revealed that the feds are planning for a possible fourth rescue of Citigroup.
--Noam Scheiber