Get It?

Geithner "The vast majority of U.S. Banks have more capital than regulatory guidelines indicate". Ken Lewis "We absolutely don't need more capital". Citigroup "Regulatory capital base is strong"....and then the story from bloomberg this morning..."At least 6 banks require additional capital, according to preliminary results of Government stress tests".
So on one hand, the feds think that regulatory capital standards are great, but on the other hand, they don't. The private institutions don't seem to think they need more capital, but the feds have blatantly threatened to fire private CEO's if they don't.

Long story short, estimates put banks at another 1.1 trillion in losses and shortfall, and Bank of America at 60-70 billion. The government is at this point, politically unable to give more money away. Bank of America could convert 27 billion from preferred shares to common. However, where then does the at least 33 billion dollar shortfall come from for BAC, and where does the trillion come from for the rest of the industry?

Where will it come from? Lies. That's where it has been coming from for the last 6 weeks anyway.
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