U.S. Banks: Too Big to Fail. Too Big to Save?

4/21 - "“We can conclude that the financial services sector is ripe to receive capital,” wrote Keefe Bruyette & Woods analyst Melissa Roberts on Friday. That is an understatement. Large-cap banks and investment banks have accounted for nearly $33 billion of equity raisings this year, or 71% of the total capital raised by all U.S. companies this year, according to KBW."

"Roberts figures about 42 U.S. financial institutions may need capital infusions this year. The breakdown: 20 regional banks, four large-cap institutions including Bank of America, as well as Sovereign Bancorp. The list includes 11 real-estate investment trusts, two mortgage insurers, and Fannie Mae and Freddie Mac, who might each need $7 billion, according to KBW. Bank of America may need another $7 billion and Sovereign Bancorp anywhere between $500 million and $1 billion."

"Given the scale of th...