Monday, May 4, 2009

Wells Fargo Up 20% on News of Capital Need

Go figure. According to various news sources, Wells Fargo has been told by regulators to raise capital after stress test.

Right before the news hit the wire at about 12:30 EST, Wells Fargo (WFC) was trading about $21.40. It immediately dipped, then started ramping up. With 10 minutes left to trade, WFC is currently at $23.63, slightly off the day's high of $23.89.

Other "troubled" banks are flying, too.

  • Bank of America (BAC): up 16%
  • Citigroup (C): up 7.7%
  • Regional Financial (RF): up 22%
  • Fifth Third Bankcorp (FITB): up 22%

The number of banks that may be required to increase capital is now supposedly 14, out of 19 tested, as the stress test results continue to dribble out before the "official" announcement on Thursday.


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