Update Saturday 12:40pm EST:
Another rather significant piece of Bank news:
Stress Test May Push 14 Banks to Raise Money, FBR’s Miller Says
May 2 (Bloomberg) — U.S. Regulators may compel as many as 14 of the nation’s 19 largest banks to raise common equity based on financial stress tests due to be completed next week, said Paul Miller, an analyst at FBR Capital Markets Corp.
Miller, a former bank examiner, said his estimate assumes regulators will require banks to maintain tangible common equity, one of the most conservative measures of capital, equal to 4 percent of their risk-weighted assets over the next two years, to withstand losses in case the recession worsens. The tests, originally scheduled for release on May 4, are set to be disclosed after U.S. markets close on May 7, according to a government official who spoke on condition of anonymity.
Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and the 16 other banks received preliminary results last week and have been debating the findings with regulators. Officials favor tangible common equity of about 4 percent of a bank’s assets and so-called Tier 1 capital worth about 6 percent, people familiar with the tests say. Tangible common equity, or TCE, is a gauge of financial strength that excludes intangibles such as trademarks that can’t be used to make payments. Tier 1 capital is a broader measure monitored by regulators.
… Rest of the article here: Bloomberg
As it has been rather common lately, worst news are always released after the close, this weekend is no different, 3 banks were taken over by FDIC and Citigroup which was oh so profitable in their earnings report and was doing so great, needs to raise $10,000,000,000 to meet requirements of banks stress test that was put off till next thursday……