Salem Radio Network News Sunday, May 29, 2022

Business

Citigroup pauses buybacks briefly due to new capital rule – CFO

NEW YORK (Reuters) – Citigroup Inc is pausing buybacks of its stock this quarter because of the expected impact of a new capital rule related to derivatives risks, Chief Financial Officer Mark Mason said on Wednesday.

Mason said the new rule, which banks must adopt by the first quarter, will likely increase Citigroup’s risk weighted assets by $60 to $65 billion and impact its CET1 capital ratio by 50 to 60 basis points.

Speaking at an investor conference, Mason said the bank is taking steps to mitigate impact of the rule and will resume its buybacks in the first quarter at “levels close to” those of the third quarter.

(Reporting by David Henry in New York; editing by Diane Craft)

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