In the News: Bank of America Needs Big $ – Stress Test Results
According to the stress test, B of A could need as much as $60-70 billion more in order to pass the stress test. Essentially, what we’re talking about here is converting all of the preferred equity interests to common shares to get them started in the right direction, and then, well, simply a hope and a prayer. Citigroup is no better off, and will require a hefty cash infusion itself in order to pass the governments [rigorous?] stress test.
I don’t think these results surprise anyone; as most people already understand that Bank of America and Citigroup are in big trouble and are pretty much being propped up by the government.
