In The News: Stress Test Update – 1 Month To Raise Capital
So we’re not sure why, or the consequences of failure, but it seems that banks which fail the stress test and are required to raise capital, will have just 1 month to raise all of the funds. Though the methods that can be utilized to raise the capital include capital raises, preferred sales and unit sales, it still seems like this time frame will pose far more problems than regulators seem to believe. But hey, regulators haven’t been wrong yet, right? Wait…ah, never mind, I’m sure they won’t be wrong AGAIN… Good luck B of A (no surprise), Citi (no surprise), Wells Fargo (pretty surprising to me as they certainly put up a fight when accepting funds and certainly didn’t seem interested in any assistance), and several others.
JP Morgan and Goldman, congrats for you two seem to be amongst the stress test winners!
