Wells Fargo needs $15 billion in new capital

[alaskaguy]

Per the results of the stress tests.

JPMorgan Chase & Co. doesn’t need to raise its capital

Link:
Wells Fargo Said to Need $15 Billion in New Capital (Update1) - Bloomberg.com

 

[superman_101680]

So much for my bank!

 

[clones26]

I am sure their $3 billion+ of profit from the 1st quarter shows that is possible.

 

[erikbj]

these capital requirements in for worse case scenarios. They should be fine, pending the world doesn't blow up

 

[alaskaguy]

these capital requirements in for worse case scenarios. They should be fine, pending the world doesn't blow up

Whose kool-aid have you been drinking? The conditions that were stressed aren't far from the economic conditions that we are currently facing. They don't even border on being worse case scenarios.

 

[galactawitz]

The government said worst case. 10.3 unemployment and an additional 22% decline in house prices. If it gets much worse than that we're all pretty much up a creak anyway.

 

[alaskaguy]

The government said worst case. 10.3 unemployment and an additional 22% decline in house prices. If it gets much worse than that we're all pretty much up a creak anyway.

The stress tests are already behind the curve ball. For example, the first quarters' unemployment rate of 8.1% is higher than the stress tests "worst case" scenario of 7.9% for the same period. At the rate of job losses we are experiencing, we will surpass a 10.3% unemployment rate this year- the stress test's worst possible scenario for 2010.

And there are a number of respected economists that are forecasting worse numbers than those.

 

[sunset]

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.

 

[CyPride]

Per the results of the stress tests.

JPMorgan Chase & Co. doesn’t need to raise its capital

Link:
Wells Fargo Said to Need $15 Billion in New Capital (Update1) - Bloomberg.com

I do business with WF. I think they are cooking their books and a person who I do business with inside WF thinks that as well. How bad? Not sure, but they are creative!

 

[drmwevr08]

And there are a number of respected economists that are forecasting worse numbers than those.

And perhaps the most respected investor in the world said that WF was the strongest around and would be just fine. Who knows who is right.

 

[erikbj]

Whose kool-aid have you been drinking? The conditions that were stressed aren't far from the economic conditions that we are currently facing. They don't even border on being worse case scenarios.

wall street doesn't seem too concerned since they are all up 20%

 

[sunset]

I do business with WF. I think they are cooking their books and a person who I do business with inside WF thinks that as well. How bad? Not sure, but they are creative!

You should be pretty sure before you say something like that. Also, cooking the books could mean a lot of things. Since you've put some thought in to this, please explain what you think they are doing.

 

[alaskaguy]

And perhaps the most respected investor in the world said that WF was the strongest around and would be just fine. Who knows who is right.

And that individual can hardly be impartial on this topic.

 

[jmb]

wall street doesn't seem too concerned since they are all up 20%

at what point did wall street show evidence that there was a problem? your statement is like asking a 479 lb fat guy if he is worried about his health...

 

[jdoggivjc]

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.

"I am altering the deal. Pray I don't alter it any further."

 

[drmwevr08]

And that individual can hardly be impartial on this topic.

Not that I care either way, but the 'respected economists' just dont have enough credibility anymore either. If I was concerned I'd rather follow Warrens money than the opinion of a guy who, if he's wrong, will only justify it as something unforseeable.

 

[CYdTracked]

The news doesn't seem to be hurting their stock apparently: It opened at $19.64 on Monday and is over $26 today. Back in early March you could have bought it for just under $9.

http://finance.yahoo.com/q?s=wfc

 

[isufbcurt]

Not a fan of WF, never have been and will never do business with them.