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.
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