Mark Gongloff, Huffington Post
This year has just been one headache after another for Citigroup, and the Federal Reserve has made it more likely that Citi kicks off 2013 with a migraine, too.
The Fed on Thursday announced the rules for the next season of its low-rated reality show, Stress-Test Survivor. The rules introduced a new wrinkle for 2013: Banks have to prove that they’ve got the capital to handle a nasty economic downturn in Asia.
And you’ll never guess who has massive exposure to Asia! OK, actually, you guessed it: That’s right, it’s Citigroup. Bloomberg points out that Citi, under ousted CEO Vikram Pandit, expanded willy-nilly into Asia in over the years and employs thousands of people there. At last check, the bank had $356 billion in consumer-banking and trading assets in Asia, by Bloomberg’s count.