stress tests: Stress Test Mess
- 05/07/09 11:53 AM
Ok, so let me get this straight because I didn't go to a fancy school; the Federal Reserve wants us to believe that 19 of our largest banks need to raise only $74.6 billion in new capital while at the same time Geithner and the Treasury wants us to believe that we need to leverage $100 billion of TARP funds into upwards of $600 billion (or more) in tax-payer guarantees in order to remove toxic assets from the banks balance sheets as part of the PPIP. Am I missing something? If the bank problem is only a $74.6 billion dollar problem, then why don't we just … (6 comments)
stress tests: Citigroup May Need $10 Billion More In Capital
- 05/04/09 03:56 PM
The Wall Street Journal is reporting that Citigroup may need to raise an additional $10 billion in capital due to the findings of the Federal Reserve's stress tests. The results of the stress tests are due to be published this Thursday. Not surprisingly, from what has been leaked so far, it appears that all 19 banks are "solvent". So despite the fact that Citigroup has recevied $45 billion in loans from Uncle Sam, and the fact that they have had $300 billion worth of their loans guaranteed by the tax payer, they are considered to be solvent. And yet here they are again, needing … (4 comments)
Ok, so let me get this straight because I didn't go to a fancy school; the Federal Reserve wants us to believe that 19 of our largest banks need to raise only $74.6 billion in new capital while at the same time Geithner and the Treasury wants us to believe that we need to leverage $100 billion of TARP funds into upwards of $600 billion (or more) in tax-payer guarantees in order to remove toxic assets from the banks balance sheets as part of the PPIP. Am I missing something?
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