How much asset did citigroup need to sell in order

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Citigroup

Total Tier 1 Capital ($billion): 89.226

Total Tier 2 Capital ($billion): 44.895

Total Assets ($billion): 2,187.631

Risk Adjusted Assets ($billion): 1,253.321

Question 1: If Citigroup suffered a loss of $45 billion in its assets in the first quarter of 2008, what would be its leverage ratio? Assume the risk weights for its lost asset were 100%.

Question 2: If Citigroup suffered a loss of $45 billion in its assets in the first quarter of 2008, what would be its Tier 1 capital ratio? Assume the risk weights for its lost asset were 100%.

Question 3: If Citigroup suffered a loss of $45 billion in its assets in the first quarter of 2008, how much asset did Citigroup need to sell in order to keep its Tier 1 capital ratio at 6%? Assume that the risk weights for its to-be-sold assets were 100% and the sale value was the same as the value stated in its balance sheet at the end of 2007.

Question 4: If Citigroup suffered a loss of $45 billion in its assets in the first quarter of 2008, how much equity did Citigroup need to raise in order to keep its Tier 1 capital ratio at 6%?

Reference no: EM132591775

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