Citigroup’s Dugan Says US Capital Plan Threatens Bank Lending
- Proposals not good when economy is precarious: Citigroup chair
- Expects revamp to make bank much simpler in a couple of years
Citigroup Inc. Chairman John C. Dugan said US plans to hike capital buffers for the biggest Wall Street banks are unwarranted and will push lending and intermediation away from the banking sector.
The proposals appeared “somewhat bizarrely” to be a response to the problems at US regional banks in March, Dugan told Bloomberg Television’s Francine Lacqua on Wednesday. The eight biggest institutions — including JPMorgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp. and Citigroup — would have to increase their capital by about 19% under the plans.