We are anxiously waiting for the stress results, but the problem is that the predictions are worse than first thought. It was said that overall we find ourselves in good condition, however, an inside source says that 10 out of the 19 banks under stress tests will need more capital. We’ve already told you yesterday that we cannot bail them out forever, but it is said that the Bank of America needs $34 billion to fulfill its shortfall, but Scott Silvestri, BoA’s spokesman, declined to make any comments.
It is said that CEO Kenneth Lewis will be forced to resign after the worked at the Bank of America for 40 years. Although we hoped that the financial system is in good shape, this is just not the case and today the US equity market has lost, while the Yen has gained. This was a result of the rumors regarding the stress tests results which should be unveiled sometime tomorrow.
Besides the Bank of America, here are some of the banks which may need more capital: Citigroup Inc, Wells Fargo & Co, Fifth Third Bancorp, GMAC LLC, KeyCorp, Regions Financial Corp and SunTrust Banks Inc., however, we should wait for the official results. Once again we must say that we cannot bail them out forever!
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