Surely this means we're all saved since they now only need an additional $63 billion to meet the minimum demands of the Geithner stress test plan. You only have to take the next leap of faith and assume that the stress test were accurate unlike every other test run since this crisis started. Call me skeptical, but...
Relief in the wake of the government's stress tests fueled a "meltup" in the banking sector Friday, helping some of the nation's largest lenders raise more than $12 billion in new equity capital.Strong demand for distortion and bonuses but beyond that, it remains debatable. What happens when this newest round of euphoria is over?
Wells Fargo said late Friday that it raised $8.6 billion selling 392.15 million shares of new common stock.
Morgan Stanley said it raised roughly $4 billion selling 167.9 million shares of new common stock for $24 each. The investment bank also issued new debt without government guarantees, bring total capital raised to $8 billion.
Executives at both banks said there was strong demand for their offerings.
