Turns out that we're not the only ones who are wary of all the bullishness on upcoming earnings. Federal regulators think banks' projections are too rosy; they've decided to limit the amount of capital that can be contributed via higher earnings, according to media reports. Some banks, like Bank of America, have taken this to heart, and will not rely on earnings in their capital raising plans.

TheStreet.com reports that Wells Fargo may still be planning on using earnings increases, an approach that the article calls "unusual" and "seems confrontational." It notes that the bank's CEO had previously called the stress tests asinine. But there's a likelihood that regulators will not sign off on its plans if the plans are overly reliant on earnings. We may seem some exchange offer activity or perhaps another equity offering.  

For more:
- here's the article

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