I am happy to send my $10 by regular airmail or via carrier pigeon straight to PDT.
May 6 (Bloomberg) -- Banks that need to raise capital under the government’s stress tests will have until June 8 to develop a plan and until Nov. 9 to implement it, U.S. bank regulators said today.
The capital buffer for each bank holding company “is sized to achieve a Tier 1 risk‐based ratio of at least 6% and a Tier 1 common risk‐based ratio of at least 4% at the end of 2010, under a more adverse macroeconomic scenario than is currently anticipated,” the regulators said in a joint release.
Capital raising plans could include sales of business lines, issuance of “new private capital instruments,” spin- offs, and continuing restrictions on dividends and stock repurchases, the release said. Financial institutions must also provide an outline of how they plan to repay government stakes, and “reduce reliance on guaranteed debt issued under” a Federal Deposit Insurance Corp. program.
The release was issued by Secretary Treasury Timothy Geithner, Federal Reserve Chairman Ben S. Bernanke, FDIC Chairman Sheila Bair, and Comptroller of the currency John
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