Money quote- “Politicians have proven far worse than our worst expectations,”
Investors should “avoid financials at all costs, particularly in the banking sector” because the Senate’s financial reform bill will end up restricting credit and hurt bank earnings, well-known banking analyst Meredith Whitney told CNBC.
…Whitney cited two new credit card rules in the Senate bill as particularly onerous. One would force banks to comply with individual state caps on credit card interest rates. The other would regulate how much credit card issuers could charge merchants for using their cards.The state caps on interest rates, she said, could make rates in one state lower than in another, causing banks not to lend in certain states.
“It’s going to make accessing capital so difficult for pockets of the country,” she said, particularly for small businesses that often depend on credit cards for funding….
22 minutes to Closing Bell…
DOW down 143 to 8369
S&P down 17 to 902
NAS down 53 to 1705
If some feisty group of bondholders doesn’t find the guts to fight the encroaching government all the way to the Supremes we are heading right off a cliff….
TOTUS and Timmeh are doing a frakkin Thelma and Louise with our economy..
Mixed Messages to Banks: Lend More *smack* Raise More Capital *smack* Lend More *smack* Raise More Capital…
Poor Bastards. It’s like Chinatown out there.
WOTS now is they will give BofA and CITI 30 days to dump Ken Lewis and Vikram Pandit and find more TOTUS Approved CEOs
Like Jamie Dimon who Obama seems to like thus JP Morgan Chase escaped the Naughty List of baaaad banks Timmeh put together….and Capital One of all people gets off with no more capital, how the hell is that possible with the charge offs rising??
Well we know how Chinatown ended..
Forget it Jake, it’s TOTUS-Town
Great plan. I won’t be diluted right away, I will always have the POTENTIAL to be diluted without warning going forward. Fabulous. Or sell the rest of the stake in CCB China Construction Bank one of our best investments….MAROONS!
Update: BofA refutes FT report, says not raising capital: Market Mover Monday: red-headed stepchildren of Stress Tests try to raise capital and save themselves from Government….goin’ down…
Update: 8:57am EST: CNBC Becky Quick live now talking to Buffett reporting BofA issued statement denying FT report that they are raising 10b in capital…..the fact that the banks are fighting it out with Team TOTUS bean-counters IN THE MEDIA is frightening..yeah I sold in May baby and I would go away could I afford a vacation in this economy, HA!!!
Here they come, walking down the street, they get the funniest looks from the Treasury agents they meet..
Hey Hey they’re the Zombies, people say their capital’s down…
yada yada…they managed to get everyone but JPMC under their thumb here, they nabbed Wells Fargo and PNC too….
Bank of America is working on plans to raise more than $10 billion in fresh capital, even as it and Citigroup launch last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets, the Financial Times reported.
Citing people close to the situation, the paper said that Citi, Bank of America and at least two other lenders will on Monday attempt to convince the U.S. Treasury and Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.
Bank of America, which has had $45 billion in government aid, was found to need well in excess of $10 billion, the Financial Times reported on its website on Sunday, citing sources.
Regional lenders Wells Fargo and PNC Financial were also among the banks that would need to raise more capital unless they could persuade the authorities their findings were wrong, the paper reported, citing people close to the situation.
*Monkees courtesy of OrangeTabbyCat3
Friday the White Paper on methodology used in the stress test of the 16 US financial firms to be released..
May 4th the results of the stress tests themselves will be announced..
Congress Critters mucking about in everything they can in our financial system, like a pressure cooker for the financials…