Fed Pushes Citi, BofA to Increase Capital

dkf

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Tue Apr-28-09 07:42 AM
Original message

Fed Pushes Citi, BofA to Increase Capital

Regulators have told Bank of America Corp. and Citigroup Inc. that the banks may need to raise more capital based on early results of the government's so-called stress tests of lenders, according to people familiar with the situation.

The capital shortfall amounts to billions of dollars at Bank of America, based in Charlotte, N.C., people familiar with the bank said.

Executives at both banks are objecting to the preliminary findings, which emerged from the government's scrutiny of 19 large financial institutions. The two banks are planning to respond with detailed rebuttals, these people said, with Bank of America's appeal expected

http://online.wsj.com/article/SB124088901025362487.html

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DrDan

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Tue Apr-28-09 07:52 AM
Response to Original message

1. they are just looking at their profits . . . it's time they consider the whole economy

Edited on Tue Apr-28-09 07:53 AM by DrDan

if they don't want to do that - then nationalize them

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lunatica

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Tue Apr-28-09 08:05 AM
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2. What does this even mean

What do they have to do to 'raise more capital'? Increase the interest rate another 10 percent?

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w4rma

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Tue Apr-28-09 08:06 AM
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3. It had better mean to lower some executive salaries or quit giving away such huge dividends. (nt)

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dkf

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Tue Apr-28-09 08:39 AM
Response to Reply #2

4. They need to issue more shares of stock

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onethatcares

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Tue Apr-28-09 09:40 AM
Response to Reply #2

5. b of a will probably

turn to a little known sentence in a piece of their advertizing which allows them to collect an additional 28% interest retroactively on all credit cards dating back to 1987.

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