The US government’s toxic assets plan will force banks such as Citigroup, Bank of America and Wells Fargo to take further large writedowns on their loans, requiring them to raise more capital from taxpayers or investors, analysts have warned. The new plan, unveiled Monday, to encourage investors to buy troubled residential and commercial mortgages will prompt banks to record losses on those portfolios, while new “stress tests” will force them to take more aggressive provisions on these loans.

This entry was posted by Gwen Robinson on Wednesday, March 25th, 2009 at 4:38 and is filed under Capital markets. Tagged with BofA, citi, wells fargo. Edit this entry.