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The IMF says U.S. banks need $275 billion in new capital.  Tim Geithner says they need $75 billion.  Or, to be more accurate, that’s what I said the IMF and Tim Geithner said.  James Surowiecki says I got it wrong:

The confusion here is understandable, but this is a mistake….The Fed’s estimate, as seen in the stress-test results, was that, as of the end of 2008, the nineteen biggest U.S. banks required $185 billion in new equity. That number is now $75 billion because, over the last four months, via things like restructuring, asset sales, and Citigroup’s conversion of preferred stock to equity, the banks have raised around $110 billion in equity. But the apples-to-apples comparison is that the I.M.F. estimate was $275 billion, the Fed’s $185 billion.

The I.M.F.’s estimate, though, is for the banking system as a whole, while the Fed’s is just for the nineteen biggest banks. Those banks have about two-thirds of the banking system’s assets, so if capital needs are distributed proportionally, then the Fed’s estimate suggests that the banking system needs just about, yes, $275 billion — a number that’s identical to the I.M.F. estimate.

Can we please fix the economy so I can go back to writing about simple stuff like rescuing the healthcare system and keeping the planet from turning into a cinder?  Thanks.

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Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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