About 10 U.S. stress test banks need capital

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Well, isn't that special?

http://news.yahoo.com/s/nm/20090505/bs_nm/us_financial_banks_stresstests_4">From Yahoo News

U.S. regulators have deemed that about 10 of the 19 U.S. banks being stress tested will need to raise more capital, according to a source familiar with official talks.

-snip-

And more details here:

Banks Will Need Capital

Stress Tests Identify About Ten; Wells, BofA, Citigroup Face Order to Refill Coffers

WASHINGTON -- The U.S. is expected to direct about 10 of the 19 banks undergoing government stress tests to boost their capital, according to several people familiar with the matter, a move that officials hope will quell fears about the solvency of the financial sector.

The exact number of banks affected remains under discussion. It could include Wells Fargo & Co., Bank of America, Citigroup Inc. and several regional banks. At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, these people said, but that number has fallen in recent days.

Representatives from Wells, Bank of America and Citi declined to comment.

The Obama administration announced the stress tests -- a process of examining banks' ability to withstand future losses -- back in February. At the time, the news sparked concern among investors and depositors that the results would be used to shut down or nationalize some of the country's weaker institutions. But Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner assured investors that none of the banks undergoing stress tests would be allowed to fail and that all would have access to government funds if needed.

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http://online.wsj.com/article/SB124148189109785317.html">MORE from The Wall Street Journal »

Looks like two outcomes and, please, correct me if I'm wrong. Either our entire financial systems collapses or we get taxed to death and said taxes all the way into the forseeable future are used to prop up these banks that will end up failing soon anyway.


(I had http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5595830&mesg_id=5595830">a thread earlier on news that Wells Fargo was going to need more capital. I thought this was big enough to give its own thread rather than bury it in an essentially dead thread from ealier.)

[grantcart]

1. I am surprised about Wells Fargo - I thought that they turned Fed funds away.

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2. Wachovia. n/t

[xchrom]

3. 10 -- 10 -- 10 -- motherfuckin banks.

i lose equity -- i lose my investments -- i gain extra intrest rates even though i'm a good customer --

and these motherfuckin ne'er do wells are gonna get more of my motherfuckin money while they drive my fellow co-workers
in this country into the fuckin ground.

i wouldn't piss on these motherfuckers if they were on FIRE.

[ddeclue]

4. Oh lovely my Wachovia..um I mean Wells Fargo Stock will take another crap on me I guess...

:cry:

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5. Don't fret...

Wells Fargo's stock rallied at the news:

WFC 24.25 +4.64‎ ( 23.66%‎ ) May 4 4:02pm ET

[ddeclue]

6. WHY?

I don't get that... it sounds like they need money they don't have...

Doug D>

[regnaD kciN]

7. "Need to raise more capital..."

In other words, look for credit card rates to go up to 39.99% by summer!

[PufPuf23]

8. B of A recently weirded me out

My ATM card wouldn't work on a telephone transaction.

Came up no card exists to the vendor but a check by phone worked just fine and was reflected in balance.

The Branch pulled up the record and said no such ATM card existed.

This is a card I use several times a week that had about a year to expiration.

So they are issuing a new ATM card to me in 5 to 7 business days (any day now).

Weird. I can right checks and take cash over the counter but my ATM died or rather became non-existent in their computer system.

[backscatter712]

9. Surprise, surprise, surprise!

as Gomer Pyle would say...