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After replicating the government's stress tests, FBR's Paul Miller says 11 of the 12 (BAC, WFC,...

After replicating the government's stress tests, FBR's Paul Miller says 11 of the 12 (BAC, WFC, C, PNC, USB, COF, STI, RF, BBT, FITB, KEY) commercial banks being examined will have to raise additional equity, with JPMorgan (JPM) the only exception. Earlier, Miller said 14 of the 19 firms being tested would need to raise capital, and warned markets may be underestimating the sums needed.
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Comments (3)
  • j_remington
    , contributor
    Comments (1343) | Send Message
     
    INITIALLY it was leaked 2 banks failed the stress tests....then they said a few more...now its 11 of 12.

     

    Its all smoke and mirrors news. Confuse the public with bits and pieces then delay the inaccurate data.
    5 May 2009, 12:02 PM Reply Like
  • VALUEDIV
    , contributor
    Comments (106) | Send Message
     
    The truth is much worse than Bernake states in the banks who have used most of the funds to simply improve their balance sheets. The idea of converting the Prefered into Common Stock totally relagates the taxpayer to a "third in line position" behind Bonds and Prefered stocks in case of failure. It is time for a nationalized U.S. bank that will only have the economic recovery as a priority, not dividends.
    Last, but not least, the banks have about $500 million of Debentures floating around the world. If any major holders call in their IOU's, many major banks will fail and go bankrupt.
    5 May 2009, 04:35 PM Reply Like
  • VALUEDIV
    , contributor
    Comments (106) | Send Message
     
    We need to start on bottoms up recovery as well as tops down stimulus. Even if the banks become healthier financially, the consumer who is unemployed or unable to borrow cannot buy the goods. If we allow our rubnaway capitalism and free markets to continue to dominate, America will fail in retaining economic strength. Think about 1945, returning GIs, marriages, children, homes, cars, luxury goods in time...THAT is what made us a wealthy country. South America and Mexico have great wealth at the top stratum of citizens and great resources, but without a growing middle class, they remain third world poor. The big boys can make money, but not 90% of it. That is Dictatorship by deprivation. We will have socialism in about 15 years at this pace. It will be the only way to feed the mass of America. Enterprise is great..."free enterprise" is folly for a democracy to survive.
    5 May 2009, 04:44 PM Reply Like
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