Citigroup CEO Vikram Pandit called the stress test "a rigorous process" that provided the firm "a clear strategy for the future."
Bank of America released a statement stressing that the government's test was based on much worse economic projections than it currently anticipates. The company said it will not need additional taxpayer support, and is currently in the process of getting out from under the government's wing by ending negotiations for government guarantees on $118 billion worth of assets.
CEO Ken Lewis said BofA is "comfortable" with its capital position and that while its plan to boost capital levels will have "a number of components, we will not need any new government money."
Wells Fargo also came out with a strong statement against the stress test results. CFO Howard Atkins called assumptions "excessively conservative.""In effect, the Federal Reserve is asking Wells Fargo to hold a significant capital cushion above 4% for a hypothetical net revenue scenario that is remote and inconsistent with the company's strong actual results so far in 2009, strong underlying earnings momentum, and the actions already taken by Wells Fargo to reduce Wachovia's revenue risk," Atkins added. GMAC did not specify how it would raise funds, but said methods could include a new stock offering, conversion of existing equity into common stock, or issuance of "mandatory convertible preferred shares," a new security created, which allows firms to issue preferred stock to the government without voting rights. The shares would only be converted as a last resort.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV