Citigroup is looking to sell a $12.7 billion portfolio of bad assets, Financial Times reports. The assets may include subprime loans, mortgage-backed securities and corporate bonds. The assets carry a high risk weighting under the new capital rules, known as Basel III, which will require banks to hold at least 7% of equity as a ratio of risk-weighted assets. Citi has already offloaded about three-quarters of the assets at prices over the levels at which it valued them on its balance sheet.

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