Banks Face Capital Punishment

Najarian blames the "rapidly deteriorating non-conforming mortgage exposure" Wachovia has in California, as well as "much higher home equity and subprime auto loan losses."

Nonperforming loans at World Savings Bank were 1.19%, up sharply from 0.84% in the second quarter.

World Savings' ratio of nonperforming assets to core capital and reserves was 18.06% -- the third highest of the 20 banks, according to the analysis. (Wachovia Bank's NPA to core capital and reserves was 4.27%.)

With a difficult earnings year expected for 2008, thin capital positions at many banks means difficult decisions -- like WaMu's -- could be ahead for others.

T. Rowe Price's Fortune raised the specter of recession and said banks could really be pressured to raise more capital.

"If we're going into a recession ... more people are going to default on their loans, and the banks are going to get less of their money back in a foreclosure," Fortune says. "That would really put pressure on [banks'] building provisions and that could lead to having to raise more capital."