So far we've stuffed $700 Billion into these banks.
The stress test results show that banks need to plug a $74.6 Billion dollar hole. Even with all the billions already poured into these banks, there are still some pretty big problems.
Bank of America Inc, which accounted for almost half of the total capital shortfall with $33.9 billion to be raised, said it planned to sell assets, issue $17 billion in common stock, and take other steps to fill the hole.
U.S. stock index futures edged higher after the test results calmed fears that the government would have to play an even bigger role on Wall Street. Many of the banks themselves are loath to take more government aid for fear of the scrutiny it may bring and tough conditions on executive compensation.
Those banks that have taken government money are trying to pay it back because they don't want more government intrusion and control. Some banks have not been allowed to pay the government back.
And this was truly sobering:
The tests found that total credit losses for the 19 banks may reach $600 billion in 2009 and 2010. All told, if the economy performs as badly as the worst case scenario used in the stress test, the 19 banks' losses would mount to $950 billion from mid-2007 through 2010.
For many banks, converting government owned preferred shares into common could turn the U.S. into the company's biggest shareholder.
But, we haven't really nationalized the banks (wink).
Meanwhile - back in DC - what is even more amazing is this:
The Federal Reserve Inspector General Elizabeth Coleman was recently unable to tell Rep. Alan Grayson what goes on at the Federal Reserve and who has been receiving the trillions of dollars that they created. She could not account for the dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations.
This is why we need to support HR1207 - Ron Paul's bill to audit the Federal Reserve. Here is the Bloomberg report. The report has some disturbing details about the Federal Reserve and these spending programs. Campaign For Liberty also has some information regarding the lack of transparency with regard to the Federal Reserve.
We got stress, and then some.
(H/T Campaign For Liberty)