Bank of America to need $34 billion in capital

WASHINGTON/NEW YORK (Reuters) – Bank of America Corp has been deemed to need as much as $34 billion in additional capital, according to the results of a government stress test, a source familiar with the results told Reuters late on Tuesday.

Bank of America spokesman Scott Silvestri declined comment.

A possible $34 billion capital shortfall is certain to increase pressure on CEO Kenneth Lewis, who was last week ousted by shareholders as chairman of the biggest U.S. bank.

That ouster could lay the groundwork for Lewis's eventual departure from the company he worked at for 40 years, including the last eight as chief executive. It may also unnerve investors who had hoped the results of the stress tests on Bank of America and 18 other banks might show the industry was in less dire condition than had been feared. Shares of major U.S. banks have nearly doubled since bottoming out in early March.

U.S. equity market futures extended losses on Wednesday and the yen gained following the news.

...The Federal Reserve and Treasury declined comment.

Well, hopefully Bank of America and the Federal Reserve and Treasury don't decline to comment after a few days has passed...would be nice to know more details, you know?

I'm rather worried about this.

Source article

And I apologize in advance if I don't comment very much on this thread.
I have finals coming up in a few days and still tons of yet due homework to catch up on, so I'm SO busy.

But I just saw this article, taking a break, and wanted to post it. I think it's important.

reply to post by Astarfaraway


One week they are making money the next week they are a few billion in the hole .... who freaken cares!!!! its all BULL anyway.

Let them FAIL ALREADY .......................

Steve

It's getting to just be so ridiculous. Its similar to Bush's hard line foreign policy- he was unwavering and would act alone if need be. ow the Fed and the Tres are the ones who won't stop funding these failures until despite what logic would suggest.

I pledge allegiance to the funds of the United Bank of America and for the failures for which it stands, one failed bank, under god with cake and injustice for all.

Man finals- I''m there too- better get back to studying.

I see giving loans to people without social security really paid off. I bet those people are laughing all the way to the next sucker.

reply to post by mikellmikell

I know- can you imagine being a destitute rural Mexican with no oportunities and crossing a border, getting a job would could have never gotten back, and even without the job you could theoretically taken out a loan for a house, sold the house and made thousands. Cry me a river BoA.
9 of the 10 largest Sub-prime crisis counties in US were in California. 24 of 25 sub-prime issuers were funded by the bailed out companies. hmmm... calls for more bailout.

hmmm......let me remember from elementary school......oh yes there it is, we have a capitalist economy, if a business can not fund itself and it runs out of its own money, wait for it......it FAILS. The doors close and no more business is conducted. wow, that was really difficult i swear. I am so sick of hearing how certain businesses, ahem AIG, cough big banks, are too big to fail. Why? Chase will use the bailout money it recieved and purchase most of them anyway.

I just heard on the radio that BOA will attempt, and believes it can, get this money through stocks and that another bailout will not be needed.....at this time. Hopefully, we will not have to "loan" them more money, assuming the above statement is true.

reply to post by mikellmikell


You sir are so misinformed it makes you look stupid repeating crap like this!!

Regardless of where you heard it , read it or made it up ..... this is just plain STUPID. people weren't creating fake credit histories, so how the heck do you suppose they got a loan, gave them a fake SS number and that's all that was needed.... ohhhhh forget it .... garbage in / garbage out.