It is time to get down to work. The publications yesterday of the results of the tests of United States banks was the starting point and now have one months ahead to introduce a regulatory action plan that meets the capital requirements of each. The latest to announce that it will carry out a capital increase has been Bank of America, said Friday that it is preparing the market placement of 1.250 million shares at a maximum cost of $ 8.79, which represents around a 38% discount on the price today, about $ 14 per share. Thus bagging nearly 11,000 million dollars in the first tranche of recapitalization plan.
The institution, the more impaired on the assessment made by the Treasury Department, needs 33,900 million dollars. The purchase of Merrill Lynch, agreed last September and completed in January by 50,000 million dollars has not proven to be very advantageous, at least in the short term, such as Bank of America CEO, Kenneth Lewis, has championed. His remarks, last March, said, “Bank of America will return to profitability this year in the absence of unexpected problems” have remained on paper. Not only is it very difficult for the body to return the millions he received from the 45,000 rescue fund between 2009 and 2010 as Kenneth assured, but will have to do ‘juggling’ to meet the demands of regulators.
In this way, following in the footsteps of other ‘fellow students’ who have gone to the’ repackage ‘after stopping the stress test. Just ring the bell in the park New York on Thursday night, Wells Fargo was the first to open the closure of the extensions to announce the placement of common shares for a total of 6,000 million dollars. He continued; according to Morgan Stanley, regulators require 1800 million, which will increase capital in 2000 million and 3000 million out other unsecured debt of the state to auction. Citigroup is another who wants to enhance its liquidity by resorting to private investors.
That’s because Wall Street banks do not want to be more ‘caught’ by the United States Government, which ended up turning to the taxpayers’ money to solve their problems, and what, as Treasury Secretary Timothy Geithner, the fund still has 109,600 million 700,000 million package approved by Congress to help the financial system.
In fact, before the publication of the results of the test were many who expressed their intention to repay the government sooner TARP money (the purchase of toxic assets). The money they started to burn when in the hands of the executive Barrack Obama, with his head to the president, have begun to put conditions on those who came to the rescue fund in November thinking it was “a blank check.” Indeed, many have argued that if they had known the restrictions imposed on the post-ban bonuses to executives, have sought help in private capital. It is too late for at least ten of the nineteen banks in total 74,600 million dollars needed to restore its solvency.
Posted by chatfinances 
