Citigroup May Need $50 Billion

Holy cow: Citigroup may need more than $50 billion, according to the Financial Times. Following the news that Bank of America needs a whopping $34 billion, Bloomberg is now reporting that Wells Fargo, the fourth largest bank by assets, will need $15 billion in new capital. JPMorgan Chase, on the other hand, is in the clear: No new capital needed! The stock market, rational as always, closed up about 100 points on the news that many of the largest banks need several billion more dollars. Reuters writes, “A recent stock market rally may allow U.S. banks to issue common shares to meet new capital requirements under stress tests, a possibility that was unthinkable just a few months ago.”