The results of the stress tests were scheduled to be communicated to banks starting Friday. Analysts are certainly busy crunching their own numbers, and modeling various economic scenarios. Bloomberg reports that financial services investment banking boutique KBW has concluded that "U.S. banks may need another $1 trillion in capital to cushion losses as unemployment rises and borrowers fall behind on payments."

According to the analysis, Bank of America may be forced by the government to enter a Citigroup-like exchange offer that would convert $15 billion to $20 billion of preferred shares into common stock. That would bolster its capital but really dilute shareholders. Wells Fargo may "have to raise as much as $25 billion in new capital and $25 billion to repay government investments." At some point, you have to wonder--especially if the results are worse than expected--if debt holders will be asked to contribute. 

For more:
- here's the Bloomberg article

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