财经观察 2005 --- Fed Pushes Citi, BofA to Increase Capital

Fed Pushes Citi, BofA to Increase Capital
http://online.wsj.com/article/SB124088901025362487.html#mod=djemalertNEWS

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 ...

• the gov't needs a few more "favors"

  Bank of America stock will fall starting from tomorrow because this news is actually telling us that this bank failed stress test. It is clearly that the CEO of BOA is lying to us before that they had enough capital and would return TARP. We should suit BOA and it's CEO.

  BAC should sue the Treasury for forcing Lewis to buy MER! Whatever happened to a consortium like LTCM? Why did BAC have to eat the bad apple?
  
  Protect shareholder value, Lewis! If they're telling you to get more capital, tell them to give it to you on the cheap with inexpensive, non-dilutive senior debt! You scratched their back w/ MER, what are you? Chopped liver?

  Well, what about all those alleged "lost" promissory notes in Florida and other locales? Have they been pledged to the Fed and U.S. Treasury as well? How much digital money and "assets" are out there? How many are toxic? How are we accounting for the liabilities related to lack or clear title to the properties these banks and lenders claim to have mortgages on that "follow" the promissory notes? how many U.S citizens and judges are now getting wise to the securitization frauds and forged assignments of mortgages and satisfaction of liens and releases of mortgages?
  
  What's real and what's not? How many times have I heard an MSNBC, CNBC, CNN and even FOX News anchor or reporter discuss toxic assets and what their real value is and where they can or cannot be found on the balance sheet of any lender?
  
  Why don't we just let American homeowners and investors, not Wall St. types, pay for the toxic assets "one-by-one mortgage and promissory note at a time for the value (10¢ to 30¢ or whatever the price) and get them off the books of the banks and let private homeowners bring private and quiet title actions to clear their property, pay off any alleged obligation to their proven lender; get their original promissory note returned to them stamped "cancelled and paid in full" and clean this toxic mess cleaned up, once and for all?
  
  Let's get real on all of this! Everyone should be allowed to know who the owner and holder of their note is and to be able to buy it back, from whomever can prove they own it for the cost it was paid for plus 10% or 15% profit.
  
  In this way, the lenders and taxpayers could all save their breath and money and the banks may not need to raise all that fresh new capital, since they have been able to get some real cash in the door.

• This is indeed hilarious. First the regulators force BofA to sink money into Merrill, and then ask them to find more !

• Obama has started screwing USA. He has put Unions before bond holders, and now Banks being pushed to collect more money from consumers, and raising stakes from US Govt?
  In the end, he will will push USA towards socialism.

  When bankers find it necessary to say "we are in good shape" -- they are not. I am not qualified to analyze banks financial statements but I do realize that with all the accounting schemes and misrepresentations, why even try.
  
  Why is this a surprise?
  
  Don't worry, BofA and Citi shareholders, the government will bail you out again by a) guaranteeing more debt, b) overpaying for the crud on your books, c) buying underpriced preferred shares, d) buying your commercial paper, e) guaranteeing any money market funds, f) more than doubling the FDIC insurance on deposits, and for a limited time offering an unlimited cap, g) artificially propping up the mortgage market so you can make more money on origination fees, and/or h) paying off your credit default swaps at par.
  
  And for you employees, you can be sure to get your full six-or-seven figure bonus at the end of this year, the crisis will have blown over by then and taxpayers will have forgotten all their hard-earned dollars they pumped into you to enable you to survive.
  
  After all, it sure is tough being a bank in the US these days, you deserve every penny you get.

• How low will BOA stock go because of it's failure of the stress tests and possible nationalization ot the bank? $5, $4, or $3?  How about City group stock? $1.5 or $2?