GBPJPY analysis - the reason why the beast is tanking today.....

Tests Said to Show Bank of America Has Biggest Capital Need

May 5 (Bloomberg) -- Regulators have determined that Bank of America Corp. has the largest need for new capital among the 19 biggest U.S. banks subjected to stress tests, according to people familiar with the matter.

Citigroup Inc.’s shortfall is more limited because the company already plans to convert government preferred shares to common stock, the people said. JPMorgan Chase & Co. doesn’t need a deeper reserve against potential losses over the coming two years, according to people familiar with that company’s result.

The banks may outline their strategies to add capital, or in other cases buy out government stakes, after the Federal Reserve publishes the stress tests results May 7. Firms requiring more capital could raise all the funds through conversions of preferred shares if they choose, according to people familiar with the matter.

read more at Bloomberg


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