Sunday, May 10, 2009

Wells Fargo expects earnings to fill deficit

Voltron says: expect Wells Fargo to continue lying and bullshitting

However, bankers said US lenders had government assurances that they would be allowed to raise less than the $74.6bn in equity mandated by the stress tests if earnings in the next six months outstripped regulators’ forecasts. The agreement – not mentioned when the government revealed the results on Thursday – means some banks might not have to raise as much equity through share issues and asset sales as the market is expecting.

It could also increase the incentive for banks to book profits in the next two quarters.

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