Looks like it's time to give both BofA and Citi the GM treatment including management change at the top. They're incompetent and they've put the economic system on the brink of disaster. Take them over, break them up and avoid the next "too big to fail" problems that they created with the help of Congress. Dragging this on forever in this state isn't helping anyone other than the top management. Reuters:
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.I guess we will see how fair Obama intends to be now that the long-awaited bank stress tests are here and the behemoths need a lot more money. Considering the number of former Citigroup employees inside the Obama economic team and the heavy lobbying efforts underway, something tells me Wall Street will get any easier ride than Detroit received.
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.
