Posts Tagged ‘stress test’

GMAC: Stress Test Big Loser-Don’t Worry They’ll Do Fine

The biggest loser on the stress test was clearly GMAC. It needs to raise $11.5 billion in capital, which is about half of its current equity. Unlike the commercial banks, it has no earnings power — it lost $675 million in the first quarter. Yet per Tim Geithner and Ben Bernanke, none of the banks […]

Stress Test Results Are In

OK if you absolutely have to have all of the stress test information here is the link for you. It’s from the Fed but it’s carried on the WSJ website. All sorts of explanations, graphs and most of all the bank specific data. No doubt you know that banks are announcing new secondary offerings, asset […]

Geithner Preferred: A New Security To Make Banks Whole

Apparently the Treasury plans to introduce a new type of security to help banks that failed, oops, I mean didn’t get high enough grades on the stress test top off their capital. If they can’t get the capital they need from the private sector they can exchange their existing TARP preferred stock for mandatory convertible […]

BofA Needs $35 Billion

Well, I guess there was more to the stress tests than we all credited it with. News out tonight from the WSJ is that Bank of America needs a cool $35 billion. Regulators have told Bank of America Corp. that the company needs to take steps to address a roughly $35 billion capital shortfall based on results […]

Stress Test Thoughts

Too much has been written about the bank stress tests, so I hesitate to jump into the fray. Nevertheless, I thought an article in the Telegraph.co.uk today made two important points that are pretty obvious but haven’t seemed to get much play. Here is what they had to say: Because of this, bank risk managers […]

Obama Administration Lands A Punch-Banks Counterpunch

The stress test exercise seems to be blowing up in the faces of everyone. Banks are disputing the criteria, lobbying for more time to raise capital and generally trying to discredit the whole exercise. From the NYT: As Washington pushes banks to mend their finances, the banks are pushing back. Emboldened by newfound profits and […]

Fed To Banks: Keep Mum About The Stress Test Results

The Fed met with all of the lucky 19 financial institutions to go over the stress test results. According to the WSJ some meetings were over in 60 minutes or less and others went on for hours. According to the Journal, several of the banks evidenced a need for more capital but no one yet […]