Displaying items by tag: JP Morgan

Everybody on this blog was explicitly warned about this in regards to Goldman. This weekend, I will go through some the other banks in granular detail, as well.

From Bloomberg: Regulators May Make Banks Raise Capital Levels With Stress-Test Accounting

Financial regulators may force many of the largest U.S. banks to raise new capital or conserve extra cash after accounting for assets held off their balance sheets.

The Federal Reserve yesterday released the methods used in stress tests on the 19 largest U.S. banks, which incorporated an accounting proposal that would bring about $900 billion onto lenders’ books. there is no reason why GS should not be tanking now. They knew this was coming which is why they decided to sell a secondary offering at what was near an historical low. To think they actually got enough patsies to buy it.

The accounting change suggests most of the 19 will need to take some action to buttress their capital, analysts said. Stronger banks may keep dividend payments low or apply retained earnings, with others selling new shares to make up the amounts, they said.

Lest we forget exactly where ground zero is for this credit mess, bear market rally or not...