Citi, Wells Fargo face higher stress capital buffer add-ons

Both G-Sibs are outliers, as Fed slaps on higher capital requirements following latest round of stress tests

Citi and Wells Fargo have been saddled with higher Common Equity Tier 1 (CET1) capital requirements following the latest round of Federal Reserve stress tests.

From October 1, Citi’s CET1 ratio requirement will rise 50 basis points to 10.5%, and Wells Fargo’s 60bp to 9.6%, in both cases due to a higher stress capital buffer (SCB).

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The SCB is one of two variable US-specific add-ons to the Basel Committee on Banking Supervision’s 4.5% CET1 ratio minimum, alongside the global

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