In the News: Who Needs Capital? Stress Test Victims Scramble…
The news is out, as I’m sure most of you are by now aware, and it’s now time to raise the money. As it stands, here are the figures:
Losers
B of A – Needs around $34 billion (wow…keep in mind, however, that they are claiming they don’t need government backing and are still planning to pay back Tarp quickly – maybe they’re right. Or maybe, it’s just business as usual as the B of A locomotive derails and plows into the side of a mountain – either way; it should be an interesting sight).
Citi – Needs around $5.5 billion (this is a drop in the bucket though considering what they’ve already raised and been through. At this point, Vikram should be kicking back and just waiting for the swarms of investors to come rolling in – any minute now). Citi has already converted some preferred shares and considering the $5 billion is honestly less than what was expected, as I just said, Vikram should be sitting pretty right about now.
Well Fargo – Needs around $15 billion (surprising considering the fuss that they’ve put up, but not all that surprising considering they did buy Wachovia and all of the precious CA mortgage paper that Mr. Thompson gobbled up a few years ago.)
GMAC – Needs roughly $11 million (not terribly surprising, though a bit sad – I like 0% financing promotions and don’t want them stopped just because they need a measly $11 million or so)
Morgan Stanley – Needs just under $2 million – eh, no big deal – Mack’s got that locked up.
KeyCorp, PNC, Regions Financial, SunTrust and 5th 3rd Bank – Each company needs just between $0.5 and $2.5 million. I don’t these results surprise, nor really matter all that much to anyone – so we’re moving on to the WINNERS.
Winners
JP Morgan, Goldman Sachs, American Express, BB&T, Bank of NY Mellon, Capital One, MetLife, US Bancorp and State Street – Solid, strong and capitalized…at least the government. Keep fighting the good fight guys…keep it together.
