Wells Fargo (WFC), the second- biggest U.S. home lender, and PNC Financial (PNC) have been asked by regulators to raise more capital after government “stress tests” showed the banks would have trouble surviving the recession, assuming it continues through the first quarter of 2010 and unemployment reaches 12%.
Citigroup (C) and Bank of America (BAC) are also working on plans to raise more than $10 bln each in new fresh capital. According to FT, both firms and at least two other lenders will on Monday attempt to convince the Treasury and the Fed that the findings of “stress tests” into their financial health were too pessimistic.
It is interesting to see how regulators are quietly releasing the “need to raise capital” on a per-bank basis before Thursday’s official release.
More on banks capital status and ‘stress tests’ here.
