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Early results of the stress tests suggest some banks might need billions more to survive. What does it mean for the market?
U.S. regulators have told Bank of America [BAC
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] and Citigroup [C
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] they may need to raise more capital following stress testing of the two banks, The Wall Street Journal reported.
The shortfall amounts to billions of dollars at BofA, the newspaper said on Tuesday.
The WSJ report seems to confirm comments made by FDIC Chair Sheila Bair during an exclusive interview with CNBC . She told us that come May 4th – the day the results of the stress tests are expected to be made public – some banks could be in trouble.
Some investors are fearful of the May 4th deadline – they say weak results could trigger the next leg down. However, others have just shrugged it off – reasoning that the weakness in Citigroup and Bank of America and other banks is already in the market.
And that leads to our Fast Money Reader Poll. Do you think that stress test results will trigger the next leg down?
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CNBC.com with wires
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