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Monday, May 04, 2009

Financial Times: BofA plans to raise more than $10 Billion in Capital

by Calculated Risk on 5/04/2009 12:48:00 AM

From the Financial Times: BofA and Citi in last push on stress tests

Citigroup and Bank of America are working on plans to raise more than $10bn each in fresh capital ... Citi, BofA and at least two other lenders will on Monday attempt to convince the Treasury and the Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.

... the government will present the final test results to 19 banks tomorrow with an announcement scheduled for Thursday ...
emphasis added
This will be an interesting week.

David Leonhardt reports the NY Times: Tests of Banks May Bring Hope More Than Fear
The results of the bank stress tests to be released by the Obama administration this week are expected to include more detailed information about individual banks — assessing specific parts of their loan portfolios ...
It sounds like regulators will release loss projections by the 12 loan categories included in the Fed White Paper: The Supervisory Capital Assessment Program: Design and Implementation