I don't know who's controlling the information these days, but the findings, or at least the alleged findings, of these government
stress tests has been handled about as sloppily as anything I can remember.
Every day it's a another bank in need of new capital or a new amount of it, whether it's Citigroup (Stock Quote: C)
That led to a near panic, as investors feared that BofA was going to require a whole new set of monies. It's already gotten some $45 billion from Washington, you know, and now this. No real surprise what happened next. Shares of BofA sank in the premarket.
Hold on though. Once people took a step back, they realized the reports weren't saying BofA needed to raise fresh capital. The New York Times, the first to report the $34 billion figure late Tuesday, said in the third paragraph that the company "could satisfy regulators' demands simply by converting non-voting preferred shares it gave the government in return for the capital, into common stock."In other words, BofA already has the money the examiners say it needs. It just needs a little accounting adjustment -- primarily to satisfy investors' recent obsession with tangible common equity, a conservative measure of how much capital a bank has to absorb loan losses. Citi and AIG