Citigroup Inc is talking to the U.S. government about its 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.

The government gave early results of stress tests to 19 U.S. banks on Friday. Banks have an opportunity to discuss the results with regulators until next week.

(Reporting by Dan Wilchins; Editing by Lisa Von Ahn and John Wallace)

Investment Citigroup