CAPITAL RESOURCES AND LIQUIDITY CAPITAL RESOURCES Overview Capital is generally generated via earnings from operating businesses.
This is augmented through issuance of common stock, convertible preferred stock, preferred stock, subordinated debt, and equity issued through awards under employee benefit plans.
Capital is used primarily to support assets in the Company’s businesses and to absorb unexpected market, credit or operational losses.
The Company’s uses of capital, particularly to pay dividends and repurchase common stock, became severely restricted during the latter half of 2008.
See “The Company,” “Management’s Discussion and Analysis – Events in 2008,” “TARP and Other Regulatory Programs,” “Risk Factors” and “Common Equity” on pages 2, 9, 44, 47 and 95, respectively.
Citigroup’s capital management framework is designed to ensure that Citigroup and its principal subsidiaries maintain sufficient capital consistent with the Company’s risk profile, all applicable regulatory standards and guidelines, and external rating agency considerations.
The capital management process is centrally overseen by senior management and is reviewed at the consolidated, legal entity, and country level.
Senior management oversees the capital management process of Citigroup and its principal subsidiaries mainly through Citigroup’s Finance and Asset and Liability Committee (FinALCO).
The Committee is composed of the senior-most management of Citigroup for the purpose of engaging management in decision-making and related discussions on capital and liquidity items.
Among other things, the Committee’s responsibilities include: determining the financial structure of Citigroup and its principal subsidiaries; ensuring that Citigroup and its regulated entities are adequately capitalized; determining appropriate asset levels and return hurdles for Citigroup and individual businesses; reviewing the funding and capital markets plan for Citigroup; and monitoring interest-rate risk, corporate and bank liquidity, the impact of currency translation on non-U.
S.  earnings and capital.
The FinALCO has established capital targets for Citigroup and for significant subsidiaries.
At December 31, 2008, these targets exceeded the regulatory standards.
Common and Preferred Stock Issuances As discussed under “Events in 2008” on page 9, during 2008, the Company issued $45 billion in preferred stock and warrants under TARP, $12.5 billion of convertible preferred stock in a private offering, $11.7 billion of non-convertible preferred stock in public offerings, $3.2 billion of convertible preferred stock in public offerings, and $4.9 billion of common stock in public offerings.
On January 23, 2009, pursuant to our prior agreement with the purchasers of the $12.5 billion convertible preferred stock issued in the private offering, the conversion price was reset from $31.62 per share to $26.35 per share.
The reset will result in Citigroup’s issuing approximately 79 million additional common shares if converted.
There will be no impact to net income, total stockholders’ equity or capital ratios due to the reset.
However, the reset will result in a reclassification from Retained earnings to Additional paid-in capitalof $1.2 billion to reflect the benefit of the reset to the preferred stockholders.
Capital Ratios Citigroup is subject to risk-based capital ratio guidelines issued by the Federal Reserve Board (FRB).
Capital adequacy is measured via two riskbased ratios, Tier 1 and Total Capital (Tier 1 + Tier 2 Capital).
Tier 1 Capital is considered core capital while Total Capital also includes other items such as subordinated debt and loan loss reserves.
Both measures of capital are stated as a percentage of risk-weighted assets.
Risk-weighted assets are measured primarily on their perceived credit risk and include certain off-balance-sheet exposures, such as unfunded loan commitments and letters of credit, and the notional amounts of derivative and foreignexchange contracts.
Citigroup is also subject to the Leverage Ratio requirement, a non-risk-based asset ratio, which is defined as Tier 1 Capital as a percentage of adjusted average assets.
To be “well capitalized” under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 Capital Ratio of at least 6%, a Total Capital Ratio of at least 10%, and a Leverage Ratio of at least 3%, and not be subject to an FRB directive to maintain higher capital levels.
As noted in the following table, Citigroup maintained a “well capitalized” position during both 2008 and 2007.
Citigroup Regulatory Capital Ratios
## Table 0 ##
(1) Tier 1 Capital divided by adjusted average assets.
Events occurring during 2008, including the transactions with the U. S.  government, affected Citigroup’s capital ratios, and any additional U. S.  government financial involvement with the Company could further impact the Company’s capital ratios.
In addition, future operations will affect capital levels, and changes that the FASB has proposed regarding off-balance-sheet assets, consolidation and sale treatment could also have an impact on capital ratios.
See also Note 23 to the Consolidated Financial Statements on page 175, including “Funding Liquidity Facilities and Subordinate Interests.
”
The following table shows the expected versus actual rate of return on plan assets for the U. S.  pension and postretirement plans:
## Table 1 ##
For the foreign plans, pension expense for 2008 was reduced by the expected return of $487 million, compared with the actual return of $(883) million.
Pension expense for 2007 and 2006 was reduced by expected returns of $477 million and $384 million, respectively.
Actual returns were higher in 2007 and 2006 than the expected returns in those years.
Discount Rate The 2008 and 2007 discount rates for the U. S.  pension and postretirement plans were selected by reference to a Citigroup-specific analysis using each plan’s specific cash flows and compared with the Moody’s Aa Long-Term Corporate Bond Yield for reasonableness.
Citigroup’s policy is to round to the nearest tenth of a percent.
Accordingly, at December 31, 2008, the discount rate was set at 6.1% for the pension plans and at 6.0% for the postretirement welfare plans.
At December 31, 2007, the discount rate was set at 6.2% for the pension plans and 6.0% for the postretirement plans, referencing a Citigroup-specific cash flow analysis.
As of September 30, 2006, the U. S.  pension plan was remeasured to reflect the freeze of benefits accruals for all non-grandfathered participants, effective January 1, 2008.
Under the September 30, 2006 remeasurement and year-end analysis, the resulting plan-specific discount rate for the pension plan was 5.86%, which was rounded to 5.9%.
The discount rates for the foreign pension and postretirement plans are selected by reference to high-quality corporate bond rates in countries that have developed corporate bond markets.
However, where developed corporate bond markets do not exist, the discount rates are selected by reference to local government bond rates with a premium added to reflect the additional risk for corporate bonds.
For additional information on the pension and postretirement plans, and on discount rates used in determining pension and postretirement benefit obligations and net benefit expense for the Company’s plans, as well as the effects of a one percentage-point change in the expected rates of return and the discount rates, see Note 9 to the Company’s Consolidated Financial Statements on page 144.
Adoption of SFAS 158 Upon the adoption of SFAS No.158, Employer’s Accounting for Defined Benefit Pensions and Other Postretirement Benefits (SFAS 158), at December 31, 2006, the Company recorded an after-tax charge to equity of $1.6 billion, which corresponds to the plans’ net pension and postretirement liabilities and the write-off of the existing prepaid asset, which relates to unamortized actuarial gains and losses, prior service costs/benefits and transition assets/liabilities.
FAIR VALUATION The following table shows the expected versus actual rate of return on plan assets for the U. S.  pension and postretirement plans: 2008 2007 2006 Expected rate of return 7.75% 8.0% 8.0% Actual rate of return (5.42)% 13.2% 14.7% For the foreign plans, pension expense for 2008 was reduced by the expected return of $487 million, compared with the actual return of $(883) million.
Pension expense for 2007 and 2006 was reduced by expected returns of $477 million and $384 million, respectively.
Actual returns were higher in 2007 and 2006 than the expected returns in those years.
Discount Rate The 2008 and 2007 discount rates for the U. S.  pension and postretirement plans were selected by reference to a Citigroup-specific analysis using each plan’s specific cash flows and compared with the Moody’s Aa Long-Term Corporate Bond Yield for reasonableness.
Citigroup’s policy is to round to the nearest tenth of a percent.
Accordingly, at December 31, 2008, the discount rate was set at 6.1% for the pension plans and at 6.0% for the postretirement welfare plans.
At December 31, 2007, the discount rate was set at 6.2% for the pension plans and 6.0% for the postretirement plans, referencing a Citigroup-specific cash flow analysis.
As of September 30, 2006, the U. S.  pension plan was remeasured to reflect the freeze of benefits accruals for all non-grandfathered participants, effective January 1, 2008.
Under the September 30, 2006 remeasurement and year-end analysis, the resulting plan-specific discount rate for the pension plan was 5.86%, which was rounded to 5.9%.
The discount rates for the foreign pension and postretirement plans are selected by reference to high-quality corporate bond rates in countries that have developed corporate bond markets.
However, where developed corporate bond markets do not exist, the discount rates are selected by reference to local government bond rates with a premium added to reflect the additional risk for corporate bonds.
For additional information on the pension and postretirement plans, and on discount rates used in determining pension and postretirement benefit obligations and net benefit expense for the Company’s plans, as well as the effects of a one percentage-point change in the expected rates of return and the discount rates, see Note 9 to the Company’s Consolidated Financial Statements on page 144.
Adoption of SFAS 158 Upon the adoption of SFAS No.158, Employer’s Accounting for Defined Benefit Pensions and Other Postretirement Benefits (SFAS 158), at December 31, 2006, the Company recorded an after-tax charge to equity of $1.6 billion, which corresponds to the plans’ net pension and postretirement liabilities and the write-off of the existing prepaid asset, which relates to unamortized actuarial gains and losses, prior service costs/benefits and transition assets/liabilities.
For a discussion of fair value of assets and liabilities, see “Significant Accounting Policies and Significant Estimates” on page 18 and Notes 26, 27 and 28 to the Consolidated Financial Statements on pages 192, 202 and 207.
- The increase in Level 3 Short-term borrowings and Long-term debt of $2.8 billion and $7.3 billion, respectively, resulted from transfers in of Level 2 positions as prices and other valuation inputs became unobservable, plus the additions of new issuances for fair value accounting was elected.
Items Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above.
These include assets measured at cost that have been written down to fair value during the periods as a result of an impairment.
In addition, assets such as loans held for sale that are measured at the lower of cost or market (LOCOM) that were recognized at fair value below cost at the end of the period.
The Company recorded goodwill impairment charges of $9.6 billion as of December 31, 2008, as determined based on Level 3 inputs.
The primary cause of goodwill impairment was the overall weak industry outlook and continuing operating losses.
These factors contributed to the overall decline in the stock price and the related market capitalization of Citigroup.
See Note 19, “Goodwill and Intangible Assets” on page 166, for additional information on goodwill impairment.
The Company performed an impairment analysis of intangible assets related to the Old Lane multi-strategy hedge fund during the first quarter of 2008.
As a result, a pre-tax write-down of $202 million, representing the remaining unamortized balance of the intangible assets, was recorded during the first quarter of 2008.
The measurement of fair value was determined using Level 3 input factors along with a discounted cash flow approach.
During the fourth quarter of 2008, the Company performed an impairment analysis of Japan's Nikko Asset Management fund contracts which represent the rights to manage and collect fees on investor assets and are accounted for as indefinite-lived intangible assets.
As a result, an impairment loss of $937 million pre-tax was recorded.
The related fair value was determined using an income approach which relies on key drivers and future expectations of the business that are considered Level 3 input factors.
The fair value of loans measured on a LOCOM basis is determined where possible using quoted secondary-market prices.
Such loans are generally classified in Level 2 of the fair-value hierarchy given the level of activity in the market and the frequency of available quotes.
If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan.
The following table presents all loans held-for-sale that are carried at LOCOM as of December 31, 2008 and December 31, 2007 (in billions):
## Table 2 ##
Loans held-for-sale that are carried at LOCOM as of December 31, 2008 significantly declined compared to December 31, 2007 because most of these loans were either sold or reclassified to held-for-investment category
GLOBAL CARDS
## Table 3 ##
2008 vs.  2007 Global Cards revenue decreased 12%.
Net interest revenue was 5% higher than the prior year primarily driven by growth in average loans of 9%.
Purchase sales were flat.
Non-interest revenue decreased by 28% primarily due to lower securitization results in North America.
Results were also impacted by the following pretax gains: sale of MasterCard shares of $466 million (2007), sales of Redecard shares of $729 million (2007) and $663 million (2008), reorganization, initial public offering and subsequent sales of Visa shares of $447 million (2007) and $523 million (2008), Upromise Cards portfolio sale of $201 million (2008) and DCI sale of $111 million (2008).
In North America, a 26% revenue decline was driven by lower securitization revenues, which reflected the impact of higher credit losses in the securitization trusts.
Lower securitization revenue was also driven by a write-down of $1.6 billion in the residual interest in securitized balances.
The residual interest was primarily affected by deterioration in the projected credit loss assumption used to value the asset.
The change in revenue was also impacted by the absence of a $393 million prior-year gain on the sale of MasterCard shares, which was more than partially offset by a current period gain from the initial public offering of Visa shares, the Upromise Cards portfolio sale, and the DCI sale resulting in pre-tax gains of $349 million, $201 million and $29 million, respectively.
Average loans were lower by 1% due to lower purchase sales (4%) and balance transfers, partially offset by a decline in payment rates across all portfolios.
Outside of North America, revenues increased by 19%, 4% and 7% in EMEA, Latin America and Asia, respectively.
These increases were driven by double-digit growth in purchase sales and average loans in all regions.
The pretax gain on the sale of DCI in 2008 impacted EMEA, Latin America and Asia by $34 million, $17 million and $31 million, respectively.
Current-year revenues were also impacted by a lower pretax gain on the sale of Visa shares: EMEA was favorably impacted by $18 million, whileLatin America and Asia were unfavorably impacted by $147 million and $103 million, respectively.
Current-year revenues were also unfavorably impacted by a $66 million pretax lower gain on sales of Redecard shares in Latin America and the absence of the prior-year pretax gain on the sale of MasterCard shares of $7 million, $37 million and $21 million for EMEA, Latin America and Asia, respectively.
Results include the impact of foreign currency translation gains related to the strengthening of local currencies (generally referred to hereinafter as “FX translation”), as well as the acquisitions of Egg, Grupo Financiero Uno, Grupo Cuscatlán, and Bank of Overseas Chinese.
Operating expenses were flat as the impact of higher credit management costs, acquisitions, repositioning/restructuring charges of $184 million and FX translation were offset by a $292 million pretax Visa litigation-related charge in 2007, a $159 million pretax Visa litigationrelated release and a $36 million pretax legal vehicle restructuring in Mexico in 2008.
GAIN INCOME AND LOANS SOLD

<table><tr><td><i>At year end</i></td><td>2008</td><td>2007</td></tr><tr><td>Tier 1 Capital</td><td>11.92%</td><td>7.12%</td></tr><tr><td>Total Capital (Tier 1 and Tier 2)</td><td>15.70</td><td>10.70</td></tr><tr><td>Leverage<sup>(1</sup><sup>)</sup></td><td>6.08</td><td>4.03</td></tr></table>
<table><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Expected rate of return</td><td>7.75%</td><td>8.0%</td><td>8.0%</td></tr><tr><td>Actual rate of return</td><td>-5.42%</td><td>13.2%</td><td>14.7%</td></tr></table>
<table><tr><td></td><td>Aggregate cost</td><td>Fair value</td><td>Level 2</td><td>Level 3</td></tr><tr><td>December 31, 2008</td><td>$3.1</td><td>$2.1</td><td>$0.8</td><td>$1.3</td></tr><tr><td>December 31, 2007</td><td>33.6</td><td>31.9</td><td>5.1</td><td>26.8</td></tr></table>
<table><tr><td><i>In millions of dollars</i></td><td>2008</td><td>2007</td><td>2006</td><td>% Change 2008 vs. 2007</td><td>% Change 2007 vs. 2006</td></tr><tr><td>Net interest revenue</td><td>$11,267</td><td>$10,682</td><td>$8,725</td><td>5%</td><td>22%</td></tr><tr><td>Non-interest revenue</td><td>8,940</td><td>12,369</td><td>11,087</td><td>-28</td><td>12</td></tr><tr><td> Revenues, net of interest expense</td><td>$20,207</td><td>$23,051</td><td>$19,812</td><td>-12%</td><td>16%</td></tr><tr><td>Operating expenses</td><td>10,556</td><td>10,571</td><td>9,324</td><td>—</td><td>13</td></tr><tr><td>Provisions for loan losses and for benefits and claims</td><td>9,556</td><td>5,517</td><td>3,152</td><td>73</td><td>75</td></tr><tr><td> Income before taxes and minority interest</td><td>$95</td><td>$6,963</td><td>$7,336</td><td>-99%</td><td>-5%</td></tr><tr><td>Income taxes</td><td>-84</td><td>2,278</td><td>2,355</td><td>NM</td><td>-3</td></tr><tr><td>Minority interest, net of taxes</td><td>13</td><td>11</td><td>3</td><td>18</td><td>NM</td></tr><tr><td> Net income</td><td>$166</td><td>$4,674</td><td>$4,978</td><td>-96%</td><td>-6%</td></tr><tr><td> Revenues, net of interest expense, by region:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>North America</i></td><td>$10,299</td><td>$13,893</td><td>$13,905</td><td>-26%</td><td>—</td></tr><tr><td><i>EMEA</i></td><td>2,326</td><td>1,955</td><td>1,205</td><td>19</td><td>62%</td></tr><tr><td><i>Latin America</i></td><td>5,017</td><td>4,803</td><td>2,726</td><td>4</td><td>76</td></tr><tr><td><i>Asia</i></td><td>2,565</td><td>2,400</td><td>1,976</td><td>7</td><td>21</td></tr><tr><td> Total revenues</td><td>$20,207</td><td>$23,051</td><td>$19,812</td><td>-12%</td><td>16%</td></tr><tr><td> Net income (loss) by region:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>North America</i></td><td>$-529</td><td>$2,713</td><td>$3,887</td><td>NM</td><td>-30%</td></tr><tr><td><i>EMEA</i></td><td>-117</td><td>232</td><td>121</td><td>NM</td><td>92</td></tr><tr><td><i>Latin America</i></td><td>491</td><td>1,233</td><td>652</td><td>-60%</td><td>89</td></tr><tr><td><i>Asia</i></td><td>321</td><td>496</td><td>318</td><td>-35</td><td>56</td></tr><tr><td> Total net income</td><td>$166</td><td>$4,674</td><td>$4,978</td><td>-96%</td><td>-6%</td></tr><tr><td>Average assets<i>(in billions of dollars)</i></td><td>$119</td><td>$112</td><td>$98</td><td>6%</td><td>14%</td></tr><tr><td>Return on assets</td><td>0.14%</td><td>4.17%</td><td>5.08%</td><td></td><td></td></tr><tr><td> Key indicators<i>(in billions of dollars)</i></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average loans</td><td>$90.0</td><td>$82.3</td><td>$73.6</td><td>9</td><td>12</td></tr><tr><td>Purchase sales</td><td>436.0</td><td>434.9</td><td>389.0</td><td>—</td><td>12</td></tr><tr><td>Open accounts</td><td>175.5</td><td>188.6</td><td>186.1</td><td>-7</td><td>1</td></tr></table>

Question: What is the growing rate of Total revenue for Revenues, net of interest expense, by region in the years with the least Net income (loss) by region For EMEA?
Answer: -0.12338