Citigroup Inc.
The US 10-year yield at 5.31% is pushing up European bond yields, with France most exposed. US regional banks such as Citizens, Zions and Huntington could earn more from higher long-term rates. Citigroup, with large European markets operations, could be hurt. Investors still see the regionals as rate victims.
France's fiscal crisis sent the euro to a 17-month low and the cost of insuring French bank debt to multi-year highs. Citigroup, Goldman Sachs and Morgan Stanley deal heavily with European banks. As those partners look riskier, the US banks face rising risk charges that cut into trading income.