At least 6 of the 19 largest banks have failed the stress test, including Bank of America and Citibank.
This is a test to find out if the banks have enough capital for some worst case scenario financial situations. And now they're all appealing... how can you appeal the fact that your bank sucks? This makes zero sense. I've sucked on a lot of tests and have never had the option to appeal. Give me a break.
The government wants these banks to raise capital by converting preferred shares to common shares, which would hold off the need for capital injection. I'd stay away from the banks. This market rally is starting to look even more fairy tale-like.
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