Bank of America to need $34 bln in capital-source Tue May 5, 2009 9:42pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] Market News Profit-taking, bank tests trip market; Disney up late | Video GM details plans to wipe out current shareholders World stocks take a breather, eye U.S. stress tests | Video More Business & Investing News... WASHINGTON, May 5 (Reuters) - Bank of America (BAC.N) has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday. A Bank of America spokesman declined comment. (Reporting by Karey Wutkowski; Editing Bernard Orr)
Not sure why this is a surprise, unless you were expecting them to magically find all the banks were fine.....is it the magnitude? Seems like chump change.
Considering they said two days ago they though C may ONLY need 10BB (and it is by most deemed to be in worse shape that BAC) I would think it could be a negative - though you are right everyone knew/knows they banks need more capital. Just a question of what the market has priced in.
Another 34B. That's a drop in the bucket. They just have to run the presses in overtime for a few weeks. No problem guys. The US is in great shape. Just print more money everything will be fine.