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It appears as if someone at the Fed has been reading my scathing criticisms of the Stress Tests and the banks true conditions and prospects - and have actually taken a recommendation or two to heart...

From the WSJ: Fed Cools Banks' Faith in Future Revenue

Big banks were hoping billions of dollars in future revenue would help them fill the capital holes found in the government's stress tests earlier this month. Now the Federal Reserve is limiting how much of that performance can be counted, according to people familiar with the situation.

The Fed's decision is forcing Bank of America Corp. to come up with billions of dollars in capital from other sources, these people said. Other stress-tested banks also have revamped their capital-raising plans or might need to, including PNC Financial Services Group Inc. and Wells Fargo & Co.

The move by the Fed, which began notifying banks last week, has deepened tensions over the stress tests, which are intended to help steady the banking industry and shore up confidence in the financial system. The results were announced May 7, and banks face a June 8 deadline for government approval of their capital-raising plans.

Some banks had planed for financial performance in 2009 and 2010 to cover 20% or more of their capital shortfalls.

The Fed initially said the 10 banks ordered to raise a combined $74.6 billion would be allowed to essentially count $215.3 billion in revenue toward their estimated losses through the end of next year.

Since announcing the stress-test results, though, Fed officials have grown concerned that some banks are leaning too heavily on future revenue projections, according to people familiar with the matter. Under the new requirement, projected revenue can be used for no more than 5% of the additional equity being demanded from the 10 banks. The Fed is tightening rules on capital it needs to raise... By DAN FITZPATRICK

 
Recent and related Bank bubble reading from my blog:

The Great Bank Bubble of 2009 (and 2008, and 2007, 2006, 2005, 2005, 2004, 2003)!

Tricky Dick Bank Reporting Schemes - What record earnings are you referring to?

America, You have been outright lied to! Bamboozled! Swindled! Hoodwinked! The Worst Case Scenario

And in Today's "the worst is behind us" news...

Welcome to the Big Bank Bamboozle!

The Real Stress Test Results

The Truth About the Banks Has Been Released: the open source spreadhseet edition and the follow-up release: The Re-Release of the Open Source Mortgage Default Model

More Bank Bull Dookey?

Who are ya gonna believe, the pundits or your lying eyes?