Breaking: Citi May Alter Exchange Ratio

Reuters reports about Citigroup's capital levels after receiving the early results of its stress test, but if it needs more capital it does not expect the government to provide it, people familiar with the matter said. The bank may be able to raise any capital it needs by changing the terms of its preferred share exchange, or adding to the exchange, the sources said, speaking anonymously because they were not authorized to speak for attribution. Any change would likely be in the form of expanding the exchange to include more trust preferred shares, one person said.

There goes the arb trade.