(CNBC) Sources: Wells Fargo Needs $15 billion in capital, Citi May Need $10 billion, stress tests

[sabra]

Source: CNBC

BREAKING NEWS: Sources: Wells Fargo Needs $15 billion in capital, Citi May Need $10 billion, stress tests show (story to come)

Read more: http://www.cnbc.com/

---

http://www.cnbc.com/id/30602119

Shares of bank stocks continued to rise even as the government told some of the industry's leaders that they'll need to raise billions to pass stress tests.

Bank of America needs to close a nearly $35 billion capital gap. Wells Fargo needs $15 billion while Citigroup may need as much as $10 billion and JPMorgan Chase will need none, Reuters reported, citing various sources.

Investors cheered the news all the way around.

Bank of America's needs weren't as bad a scenario as some on Wall Street privately feared, sending shares sharply higher even as the bank's future remains murky.

[avaistheone1]

1. Wow! this bank bailout plan is working really well.

It is just one taxpayer handout after another.

Oh yeah! It was announced that Bank of America needs another 31 Billion dollars.

...Not to worry though there will be no single payer universal health program for the people.

[mbperrin]

2. AND no help on student loans, AND no help on foreclosures, AND

no help on credit card rates, AND no torture prosecutions.

BUT plenty of handouts for the banks!!! YAY!

[avaistheone1]

13. Yup. Everything is working according to plan.

[DaLittle Kitty]

22. Russell's Recommendations Last September...

ww.johnrussellforcongress.com scroll down to second Press Release...

[DaLittle Kitty]

23. Russell's Position On Bailout Last September!

www.johnrussellforcongress.com

[bluestateguy]

3. Why is this leaking before the report is released?

To me that is the real outrage. This leak should be investigated and the leakers disciplined.

[Oregone]

25. Leaked on purpose

Its to gauge public/market sentiment to the preliminary results (which can be negotiated and changed). Sometimes they leak overly bad news, and offset it with bad (but not epically bad) true results that deflects criticism (because people are happy the apocalypse is avoided). A lot of it is perception and smoke & mirrors.

[thewiseguy]

4. And their stocks are trading sharply higher

[OhioChick]

5. No more tax-payer money. That obviously isn't working....this is getting ridiculous. n/t

[OwnedByFerrets]

6. I just need $100,000. Can I get in line too?

[OhioChick]

7. Nah....we're all peons....undeserving and all.

Go find yourself a tent city. :sarcasm:

[CoffeeCat]

8. Am I just a cynical freak?

I'm so sick of this story being peddled as legitimate. Stress tests...oh please.

Most of these banks are insolvent. They sold so many junk mortgages, then packaged them
up into securities that they hold as assets. The assets are worth nothing. This stuff is
all over their books. They're screwed.

No amount of money is going to fix this. The banks have cancer. We're throwing cotton balls
and Neosporin at them.

And another thing--these banks aren't lending. The "credit markets" haven't unfrozen. Conversely,
consumers and small businesses aren't borrowing. So, if they've got junk proliferating on their
books--and they aren't lending--how in the ell could BOTH of these banks announce "record profits"
and "amazing profits" cuz that's what they did last month!

These banks need billions more, but they just announced sterling "profits"? Someone please...explain
this nonsense to me.

And one last thing. About a month ago, the banks and Congress members lobbied the people who control
the Federal Accounting Standards. They begged them to allow the BANKS TO DETERMINE THE VALUE OF
THEIR TOXIC ASSETS. In effect, these numbers behind this stress-test report--were arrived at by
allowing the banks to determine how valuable their worthless assets are!! Hello! Gee, I'm sure there
was no funny business there!

Just what in the hell is going on in this country?

This stress test is a joke...in my opinion.

I guess that makes me a cynical nimrod, cuz I'm not buying the nonsense!

[kjackson227]

9. AND... the interest rates on credit cards are going sky high...

some as high as 29%, but yet and still they keep giving their so-called ceo's MILLIONS of dollars???
This is highway robbery of our tax money... GRRRRRRR!

[Kokonoe]

20. The bail out money

IT HAS TO BE CALLED PROFITS otherwise the banks can't take and use it for bonuses.

[Aloha Spirit]

10. They're talking about the need to raise private capital

not a government loan.

[lib2DaBone]

11. NOT just No.. hell no... no mas... nada...

Not a penny more for the Bankster/Gangsters. Let 'um fail. There is not enough money in the world to buy back all the bad paper debts. We are only prlonging the misery.

We should be rebuiding our railroads, briging textile and shoe factories back to the US, shoring up our machine shops and recruiting tool & die makers.

When China attacks... what are we gonna do.. ask them to make our bullets for our guns and supply our uniforms? (Pretty please?)

Americans should NEVER have let our manufacturing base get sucked off shore. Ross Perot:"..the giant sucking sounds of jobs leaving the United States".

[Blue_Tires]

12. now is the time to finally shut off the cashflow...

no more wall street SOB stories...especially since they were *SO* expressive in their gratitude for the last mountain of taxpayer cash...

[LaPera]

14. I need only about 1 billion dollars, how do I go about getting it?

[tomm2thumbs]

15. I'll split it with you if I get 2 billion from the government this year

50/ 50 sound fair?

[Yavin4]

17. Change Your Name To Citibank

Put on a lot of weight and then say that you're too big to fail.

[Yavin4]

16. I Say Give These Banks The Money

At 31% interest and then raise the interest rate without notifying them. Then levy late fees on them.

[JDPriestly]

18. While they are handing out money, they should give a few billion

to each out of work engineer in the country and let them just get creative. We are wasting money on these banks that we could invest in developing answers to the serious problems of our day.

[yy4me]

19. Isn't it about time for someone in high places to see that this

fiasco is not working. More $$$ down an endless drain.

On a personal note, I have to cancel a doctor's appointment because I didn't have the courage to again tell him I could not afford the tests he wants me to have.
OK, I have Medicare but there is still a lot of money due from things like a colonoscopy and a bone density test and the blood work. Never mind the cost of the doc's visit and little things like co-pays.

Russian roulette, being old and unemployed stinks.

Any wonder why we are all shouting about this banking mess? We are struggling and I don't notice anyone running around to bail us out. If all the combined moneys thrown at this endless bank drain was split among the population or spent on health care, I think we'd all be better off. Let the banks fail. Happened before and it was not the end of the world.

I know, I'm naive. But, I'm also fed up.

It is not working...hear that Washington?

[Capt. America]

21. If any Rethug gives you the argument about "welfare cheats" or "foreign aid" budgets

as the cause of America's debts in the future you just need to remind them about the biggest welfare recipients of all --corporate America.

[Vidar]

24. No stress tests for citizens, however.

[MichiganVote]

26. Then the fuckers can EARN IT! No more money for the banks. Period.

[Canuckistanian]

27. I thought Wells Fargo didn't need anything

In fact their CEO was bitching about the government trying to rush him into accepting bailout money. He said they didn't need any.

[Wednesdays]

28. K&R

:kick:

[w4rma]

29. No more money for those corrupt entities. (nt)