“Stress Tests” Point To Need For $150 Billion? Speculation Becomes Absurd
How much will the 19 banks that were subjected to the government’s “stress test” need to raise? No one knows and guesses range as high as $150 billion. But, guesses may be well off the mark. No one outside the…
But, guesses may be well off the mark. No one outside the banks and the government know the details of their financials and no one knows how the results of debates between banks and regulators over the amount of capital they will need may turn out.
According to Reuters, Douglas Elliott, a fellow at the Brookings Institution, says the sum of what the financial firms will need may be as high as $150 billion. But, his models of bank balance sheets being measure against key government milestones including unemployment and housing prices may have little to do with reality. But, giving the press a huge number will get his name in the papers.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.