We got your stress right here: We won’t get the official stress test results until tomorrow, but the dollar amount needed to be raised privately at the House of Lewis is $33.9 billion dollars.
Alternatively, BofA could convert Uncle Sam’s non-voting preferred shares. That would give the taxpayer a significant, potentially majority stake in the company.
The info was leaked by an executive at the bank. My best guess is the bank is lobbying to get a lower stress test number.
19 banks are going through the stress test, and 10 are believed to need more capital.
Another report suggests that Wells Fargo needs to raise capital — despite recent statements from Warren Buffett: “Federal regulators are asking Wells Fargo & Co. to raise more capital after government “stress tests” showed the bank would have trouble surviving if the recession worsens.”
U.S. Says Bank of America Needs $33.9 Billion Cushion
LOUISE STORY and ERIC DASH
NYT, May 5, 2009
Sources: U.S. Asking Wells Fargo To Boost Capital
Associated Press/NPR.org, May 4, 2009