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发表于 2009-4-22 06:08 PM
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1# WaveRider
Gains Erased
The rally was reversed as concern grew that government stress tests will undermine confidence in banks. The Obama administration may direct banks that are judged to be short of capital to disclose how they are going to get additional funds when the government reveals the results on May 4, according to a person familiar with the matter.
Should the U.S. unemployment rate rise to 12 percent from its current 25-year high of 8.5 percent, then most banks will need to raise more capital, Paul Miller, an analyst at Friedman Billings Ramsey Group Inc., said in a Bloomberg Television interview.
“The higher we go the worse off these banks are going to be,” Miller said during a Bloomberg Television interview today.
KeyCorp, Wells Fargo
KeyCorp fell 90 cents to $6.15, the biggest decline in the S&P 500, after BMO Capital Markets downgraded Ohio’s second- largest bank to “market perform” from “outperform,” saying the company’s “problem assets are spreading to other loan portfolios.”
Wells Fargo & Co. dropped 63 cents to $18.18. Atkins said in an interview on CNBC that he doesn’t know what the U.S. may say in their stress tests and told Bloomberg Television that “I don’t want to say we’re out of the woods yet.” The second- biggest U.S. bank by market value rallied earlier after saying first-quarter profit rose 53 percent as borrowers rushed to refinance mortgages.
The S&P 500 Financials Index of 80 banks, insurers and investment firms closed down 3.8 percent after rising as much as 2.2 percent. The gauge is still up 68 percent from a 17-year low reached March 6. |
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