Get ready for yet more bailout and spending,
Largest U.S. Banks Need Additional $75B in Equity, According to Stress Tests
The nation’s largest banks collectively need another $75 billion in equity to ride out potential losses due to the recession, according to long awaited government stress tests released this afternoon.
Of course, it’s coming out of taxpayers’ money:
The banks that need more capital have a month to inform the government of how they plan to do so. Their options include selling new common stock and selling off business lines or other assets. If the firms fail to raise the money in six months, they would receive a new injection of money from the government.
One quick question,
Since when are banks supposed to be immune to recessions?