Wells Fargo Asked to Raise Capital

*gee, I wonder why? Maybe Warren Buffett should be allowed to buy this BAD bank, then he can use shareholder bailout dollars instead of US taxpayer dollars. And I bet the CEO is having a good day over this one.

From CNBC: Wells Fargo Is Asked to Raise More Capital After Stress Test
Regulators have told Wells Fargo to shore up its finances after government "stress tests" showed the bank would have trouble surviving a deeper recession.

Regulators have said they will not allow any of the 19 firms to fail because it would be too dangerous for the rest of the financial system. Wells Fargo holds billions of dollars in mortgage, construction and credit card loans.

The stress test treated those loans as especially vulnerable since borrowers would face trouble repaying their debts in a much worse economy.

Analysts expect regional banks that were stress tested also may be asked to raise capital, since their holdings are similarly tilted toward loans.

Cleveland-based KeyCorp [KEY 6.46 0.58 (+9.86%) ] and Cincinnati-based Fifth Third Financial [FITB 4.39 0.54 (+14.03%) ] are among the banks in this situation. Bank of America [BAC 9.20 0.50 (+5.75%) ] and Citigroup [C 3.10 0.13 (+4.38%) ] also will be asked to raise money, sources have told The Associated Press.