Stess tests start to create stress …
WSJ reports, that early results of the stress test show, that FED will ask “some” banks to raise more capital.
Bank of America, Citigroup, Regional Financial Corp., Fifth Third Bancorp and Wells Fargo are being named in the article.
Most scary about it … banks want the FED to weigh their earnings power on the Q1 figs which had a lot one-time-effects.
AUTSCH!
On the other side of the ocean … F.T. reports, that the U.K. is about to ask its leading banks to hold MORE capital as an insurance against future financial crises …
OOOPS!
This … including the swine flu scare should tip the scale to a needed correction …
BTW … Stress Tests … which had been said to be issued May, 4th are rumoured to be issued during the course of the week …
Take care!
Tags: Bank of America, Banks, Citibank, financials, stress test
