Posted on 04/23/2009 12:29:44 PM PDT by Nachum
* KBW analysis shows banks need to raise capital
* Sees Bank of America needing more government help (Adds dateline, detail on government stress test)
NEW YORK, April 23 (Reuters) - U.S. banks including Bank of America Corp (BAC.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) may need to raise $1 trillion of capital, Keefe, Bruyette and Woods analysts said in a report on Thursday, after they stress tested the industry.
(Excerpt) Read more at reuters.com ...
You mean the government wasn’t hiding the results of the stress tests from the public because they we’re just so darn good?
Looks like they will be working late again over at the Bureau of Engraving and Printing.
At this rate it won’t be long before a square of chamin will be worth more than a dollar!
Is it capital or money that the banks need? If its just money, then that's easy: print away. Real capital is a bit more problematical, as I understand it...
I think the formula goes something like this:
(1) Calculate how many shares of stock it takes to CONTROL the bank. This is actually much less than 50% of the stock since many shares are not voted and there probably aren’t many, if any, “blocks”.
(2) Calculate how much those shares would cost after the dilution caused by the new issues.
(3) Declare that the banks need to raise that much money, or else.
(4) Step forward with bailout funds secured by those specially issued shares.
(5) Sit back and use the equity position to control the banks.
Nationalization accomplished!
[At this point I can’t tell whether this is “tin foil hat” or reality!]
“tin foil hat” is the new reality.
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