Wednesday, May 06, 2009

Citi, BofA Need $90 Billion

Care to buy some stock?

Citibank and Bank of America will need about $90 Billion in new equity based on results of the "stress test" administered by the Fed.

That's the low-end bet.

3 comments:

  1. I don't know what's more appalling. The fact that these giants need $90 billion of additional capital to withstand a lengthy recession or the fact that our government allowed these monsters to get to a size where $90 billion of additional capital needed is probably a "low-end bet".

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  2. There's another possibility: the fact that The Anointed Masters Of the Universe MBAs couldn't factor in the possibility that housing-values would DECREASE, ever...

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  3. Well, the above post is assuming you believe the results of the stress tests...which I don't. No way could that task have been completed in the time frame allotted.

    I'm guessing the taxpayer will be on the hook to Citi for a looooong time.

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