Just how short of capital is Citigroup? As you know, the debate has raged the past few days. Meredith Whitney ignited it with her note that the bank may have to cut its dividend and sell assets to shore up its capital levels. Fortune notes Citigroup's tangible capital to tangible equity ratio (which strips out intangibles) looks weak. The ratio was at 2.8 percent as of Sept. 30, compared with 4.3 percent at beginning of 2006. JP Morgan, the magazine notes, has a ratio of 4.2 percent. Citigroup's ratio seems a bit vulnerable and you can bet that credit rating agencies are taking a close look. Whitney thinks the bank needs a $30 billion boost. The situation is all the more dire given the earnings situations and the possibility of more loan losses. You cannot rule out that it will have to bail out some of its SIVs.

For more:
- here's the Fortune article

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