Stress Test Results Released

By iamned - Last updated: Thursday, May 7, 2009 - Save & Share - Leave a Comment

Stress test results in: An additional $74 billion is needed.

To be honest, I am very pleased at these results. The market will brush it off. Had been $746 billion we would be be looking at a much worse situation.

Here’s a bank by bank list of capital buffer shortfall:

American Express (AXP): $0
Bank of America (BAC): $33.9B
BB&T (BBT): $0
Bank of New York Mellon (BK): $0
Capital One (COF): $0
Citigroup (C): $5.5B
Fifth Third Bancorp (FITB): $1.1B
GMAC: $11.5B
Goldman Sachs (GS): $0
JPMorgan (JPM): $0
KeyCorp (KEY): $1.8B
MetLife (MET): $0
Morgan Stanley (MS): $1.8B
PNC Financial (PNC): $0.6B
Regions Financial (RF): $2.5B
State Street (STT): $0
SunTrust Banks (STI): $2.2B
U.S. Bancorp (USB): $0
Wells Fargo (WFC): $13.7B

Tomorrow all of these are gonna be up 5-15%. Spy rally 2%. QQQQ rally 2.5%? maybe. Not surprisingly there was no stress. Why? Because if the banks need $74 billion the fed will give it to them, and it’s only 1/10 of the Obama stimulus package.

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