After conducting “stress tests” of the 19 biggest banks, the government has told Bank of America Corp it needs $34 billion of capital, roughly triple what had been expected, an industry source familiar with the results said.
Wells Fargo & Co needs $15 billion, Bloomberg News said, citing an unnamed source. Citigroup Inc may need as much as $10 billion, a person familiar with the matter said. About 10 of the 19 banks that were tested may need capital, a person familiar with the official talks said.
And the rumors are these stress tests weren’t very stressful.
Over at the Great Orange Satan, a poster wonders why the truth is coming out in such dribs and drabs (Warning: mild language):
Dribs and Drabs, that’s how these ‘little stories’ are coming out about the financial meltdown. Perhaps ‘they’ don’t think ‘we’ will notice the horrifying little details that way….like the new story about AIG bonuses. Now we find out that the bonuses were actually 4 times larger than was originally reported. Doesn’t it make you wonder who lied about the original figures, and why it is being reported now?
I think that it’s because the truth of Wall Street’s malfeasance, perfidy, cupidity, and stupidity is so bad that the government is afraid it could lead to panic and that, frankly, we would all be better off just to know the extent of the badness, but that’s just me.
But, then, that would reveal that the financial emperors have no clothes.
And We Can’t Have That. After all, Greenwich, Conn., gets awfully chilly in the winter.