I don't want this to head to the cave, but this "stress test" is, in my opinion, nothing more than politics. A continuation of governmental power grab (and it's not limited to one party or the other).
Guess what most banks are going to have to do to raise the type of equity the govt now demands? That's right, convert the govt's preferred stock (which WF didn't want to give out in the first place, nice that the govt forced them to accept a govt infusion and not allow them to pay it back except under some unknown set of circumsatnces) to common stock. Guess what happens at that point? The government owns huge chunks of these institutions.
Nothing like changing the rules of the game whenever you choose.