Last week I noted in "Bank Injections just the Beginning" that US banks would need much more than the $50 billion that has been injected by the TARP program to date. The story below is about UK banks, but it is a pre-cursor to what is coming down the pike for US banks. From the TIMESONLINE:
Banks may need further support from taxpayers as recession bites
Britain's banks may need to raise capital above and beyond the £50 billion of taxpayer-underwritten money already earmarked for them.
The Bank of England's report into financial stability today suggests that a recession as severe as that of the early 1990s would lead to credit losses of £130 billion for Britain's six biggest financial institutions and possibly wipe out the entire government-backed funding package.
Not only will US banks be getting more capital but I think one or more of the large players, GS, C, MS for example will be forced to merge with another entity just to survive.