De stress test report is out.
It’s on page 8 that we can read everything about the “SCAP Buffer”, or the amount of money these banks will need to raise in order to come into compliance with the stress test. By far the biggest number on that row is the $33.9 billion for BofA, but that’s just 2% of BofA’s risk-weighted assets. Check out, by contrast, the $11.5 billion that GMAC is being asked to raise: that’s a whopping 6.6% of risk-weighted assets.
The ‘bank’ in the worst shape is GMAC. Yes, the same GMAC who wants to take over the obligations of Chrysler Financial.
Whatever the conclusions are, Tim Geithner has what he wanted: he gained precious time.
It’s on page 8 that we can read everything about the “SCAP Buffer”, or the amount of money these banks will need to raise in order to come into compliance with the stress test. By far the biggest number on that row is the $33.9 billion for BofA, but that’s just 2% of BofA’s risk-weighted assets. Check out, by contrast, the $11.5 billion that GMAC is being asked to raise: that’s a whopping 6.6% of risk-weighted assets.
The ‘bank’ in the worst shape is GMAC. Yes, the same GMAC who wants to take over the obligations of Chrysler Financial.
Whatever the conclusions are, Tim Geithner has what he wanted: he gained precious time.
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