Why wait a whole day for the official results of the stress tests when there are rumors to spread?
You’ve already heard that 10 of the 19 banks need dough, so here’s a roundup of what’s being bantered around 24 hours prior to the release of the data. Some are based on press reports, while others are pure conjecture.
NEED MONEY:
- Bank of America: Reuters/WSJ reported (5/5) that BAC needs $34B
- Citigroup: FT reported (5/5) that Citi will need less than $10B and perhaps as little as $6B
- Wells Fargo: Bloomberg reported (5/6) that WFC needs $15B
- PNC Finanical: FT reported (5/4) that PNC will need to raise more capital; no amount reported
- US Bancorp: No specific reports, but some believe that the bank needs to raise capital
- GMAC LLC: Bloomberg reported (5/6) that GMAC needs $11.5B
- SunTrust: Lumped in with regional banks that many speculate need to raise capital
- Capital One Financial: no media reports, but believed to need more money
- Regions Financial: WSJ reports (5/6) that the Birmingham, Ala., bank needs to raise an undisclosed amount of new capital
- Fifth Third Bancorp: Analysts from Citi and FBR believe bank may need upwards of $2B
- KeyCorp: Analysts from Citi and FBR believe bank needs to raise undisclosed amount of capital
DON’T NEED MONEY:
- JP Morgan Chase: Bloomberg reported (5/6) that sources say JPM does not need to raise capital
- Goldman Sachs: Bloomberg reported (5/6) that a source says GS does not need to raise capital
- Morgan Stanley: Bloomberg reported (5/6) that MS does not need additional capital
- State Street: no media reports, but believed not to need money
- American Express: AP reported (5/6) that AXP does not need to raise capital
- Bank of NY Mellon: Issued non-FDIC backed debt, which some see as an indication that the bank cleared the Stress Test
- BB&T: Originally thought to need money, but then issued non-FDIC backed debt, which some see as an indication that the bank passed the stress test
- MetLife: Bloomberg reported (5/6) that Met-Life doesn’t need additional capital
Isn’t this exciting? Or maybe just a tedious exercise. Either way, it’s (thankfully) over tomorrow!
