Amounts Of Capital Raises Vary Widely For 10 US Banks
07 Mayo 2009 - 5:44PM
Noticias Dow Jones
Ten banks were told by the Federal Reserve to come up with $75
billion in fresh capital, most of which coming from three of
them.
Bank of America (BAC) Corp. has a $34 billion hole - the most of
its peers - which it plans to fill without any additional capital
from the government.
Meanwhile Wells Fargo & Co. (WFC), weighed down by troubled
loans tied to its purchase of Wachovia Corp., has a $13.7 billion
gap. GMAC LLC (GMAC) comes in a close third, at $11.5 billion.
Meanwhile, Citigroup Inc. (C), having successfully lobbied the
government for credit for some pending capital-producing
transactions, must raise about $5.5 billion - less than some had
expected. The banking giant plans to cover the shortfall by
expanding its plan to convert preferred shares to common
shares.
Other banks must come up with comparatively small amounts. Fifth
Third Bancorp (FITB), KeyCorp (KEY), Morgan Stanley (MS) and PNC
Financial (PNC) each need less than $2 billion in fresh capital.
PNC Financial needs to raise just $600 million.
Meanwhile, Regions Financial Corp. (RF) and SunTrust Banks (STI)
must raise $2.5 billion and $2.2 billion respectively.
JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS),
American Express Co. (AXP), BB&T Corp. (BBT), State Street
Corp. (STT), MetLife Inc. (MET), Bank of New York Mellon Corp.
(BK), U.S. Bancorp (USB) and Capital One Financial Corp. (COF)
don't need to raise any additional capital at all.
-By Jessica Holzer, Dow Jones Newswires; 202-862-9228;
jessica.holzer@dowjones.com