Bank Of America Needs $34B In Capital
Something just doesn’t seem right here. I really should take some time to review these financial statements. I guess only time will tell other then the cash infusion which will fleece us all with inflation I still think somehow us taxpayers are getting fleeced by Obama, Bush and Wall Street.
According to New York Times and Wall Street Journal reports, the government is expected to announce Thursday that the Charlotte, N.C.-based bank needs $34 billion in capital based on the results of its “stress tests” on 19 of the nation’s largest financial firms. The New York Times quoted a bank executive, while the Journal report cited unnamed people familiar with the situation.
The stress tests are being used to determine how banks would fare if economic conditions worsened. Any banks that are deemed to need more capital based on potential future losses will be required to address the capital situation immediately, to ensure they have the necessary protection if the economy worsens.
Banks will have an opportunity to raise the funds on their own before the government steps in to help support them.
For Bank of America, the $34 billion shortfall could be covered in multiple ways, including converting into common stock a portion of a $45 billion investment it received from the government as part of the Troubled Asset Relief Program. Bank of America has been among the hardest hit banks by the credit crisis and ongoing recession.