Two days ago they said:
 "Currently, the major U.S. banking institutions have capital in excess of the amounts required to be considered well capitalized. ( From the Joint Statement by the Treasury, FDIC, OCC, OTS, and the Federal Reserve - February 23, 2009) 
Today it's reported:
The government set a six-month deadline for the biggest 19 U.S. banks to raise any new capital deemed necessary after a mandatory review of their balance sheets. (Feb. 25, 2009 Bloomberg.com)
Uh huh. No disconnect here. Everything is kosher as long as your definition of "current" means a time span of no more than five minutes.


The regulators will oversee the so-called stress tests by the end of April, which will identify how much extra cushion each bank will need, the Treasury said today in Washington. Lenders will have six months to raise private capital or accept government funds and the conditions that come with it.

These same regulators are in these banks on a daily basis. It is their job. It is what they collect a pay check to do. Why the Hell do they need until April to figure out information they should know yesterday?

“While the vast majority of U.S. banking organizations have capital in excess of the amounts required to be considered well capitalized, the uncertain economic environment has eroded confidence in the amount and quality of capital held by some,” the Treasury said, announcing guidelines for new bank reviews.
Translation: Insolvent

Any new government money will come in the form of convertible preferred securities, which would acquire voting rights if converted into common stock. U.S. officials, speaking to reporters after the announcement, said there would be no limit on how much money the program could provide banks, raising questions about whether the Obama administration will need to ask Congress for more bailout funds.

 Meaning: Citigroup will soon trade below a dollar and become nationalized. Common shareholders will be crushed . But, many more billions of $ will go into the C abyss before the bust.
Will the Oblama admin need more $$$? Don't be ridiculous, they will want 100s of billions more.

The banks themselves will analyze system-wide losses under two economic scenarios, along with forecasts for internal resources to absorb the losses. Supervisors will discuss the results with the companies and determine whether an additional capital buffer is needed, according to the Treasury.
I am very relieved to know that the very same people who created this mess will be able to tell Treasury how much more money they want. Oh, wait! This is exactly the same method that has been used since day one of bailout/loan insanity. 

Federal Reserve Chairman Ben Bernanke said today that not all of the 19 banks will likely need new injections of government funds.
Kumbaya my lord Kumbaya! C'mon everybody, sing!

{A Ben "The nearsighted" flashback}
"Thus far, however, we have not seen major spillovers from housing onto other sectors of the economy." ... "We will follow developments in the subprime market closely. However, fundamental factors--including solid growth in incomes and relatively low mortgage rates--should ultimately support the demand for housing, and at this point, the troubles in the subprime sector seem unlikely to seriously spill over to the broader economy or the financial system." (June 5, 2007)

The Treasury has used about half the $700 billion allocated by Congress for the banking rescue, and most of that was spent under former President.
Go ahead and blame Bush. At least it took his administration longer than a month to become an indecisive, muddled, national disgrace. 

Banks receiving the new money would be pressed to show how they will lend more, officials said.
Here is an area where banks have it correct. They need to hoard every penny, dime, nickel, and quarter they can get their hands on. WE ARE NOT AT THE BOTTOM OF THIS MESS YET!

In their assessments, regulators will incorporate off- balance-sheet commitments, earnings projections, risks of the banks’ business activities and the composition and quality of their capital, the Treasury said.
Uh huh, uh huh, things they are supposed to do in the course of EVERY working day.

“Geithner also said nationalization is “the wrong strategy for the country and I don’t think it’s the necessary strategy.”
I have no idea what I'm doing and as soon as one of these sons of bitches goes KABOOM and gets nationalized, the sell off in the equity markets will be of a magnitude never previously known to mankind. Therefore we will sacrifice the very future of every American, man, woman, child and their desendants before we let this happen. 

Any capital investments made by the Treasury will be placed in a separate trust to manage the government’s investments in financial companies.
 Like the Bear Stearns portfolio? I can't wait until next month to see how much money this has made for the tax paying public! Last I heard was a few months ago when they reported the portfolio was down $3B.

While the biggest 19 banks will be required to undergo the stress tests and get more capital, smaller banks can also apply to participate in the Treasury initiative, known as the Capital Assistance Program.
Smaller banks have thus far been treated like bastard step children by the Fed and Treasury. Many of them have and continue to be operated in an exemplary and profitable manner. Even with good financial stewardship, they need help during this mess. They aren't receiving any. Good business practices mystify the Fed and Treasury and they want no part of it.

Bernanke said today that while the U.S. government may take “substantial” stakes in Citigroup and other banks, it doesn’t plan a full-scale nationalization that wipes out stockholders.
 Liar. The plan is in place. You have your finger on the button and await supreme commands directive to push it.

{ A Ben "The nearsighted" flashback} 
 "A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily... (From an article titled "A Crash Course for Central Bankers" written by Ben Bernanke and published in 'Foreign Policy')}  

Nationalization is when the government “seizes” a company, “zeroes out the shareholders and begins to manage and run the bank, and we don’t plan anything like that,” Bernanke told lawmakers in Washington.
 Double speak! Anyone remember "I did not have sex with that woman" " Ohhhh, y'all consider THAT to be sex"?

{A Ben "The nearsighted" flashback} "We at the Federal Reserve will do all that we can to prevent fraud and abusive lending and to ensure that lenders employ sound underwriting practices and make effective disclosures to consumers," ... "We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system" ... "We must be careful not to inadvertently suppress responsible lending or eliminate refinancing opportunities for subprime borrowers" ... "[The] vast majority of mortgages, including even subprime mortgages, continue to perform well." (May 17, 2007)} 

Today’s statement didn’t specify any potential limit on the amount of money involved. President Oblama late yesterday signaled that the administration will seek more money from Congress for the effort to break the back of the credit crisis.
Hey, did you hear the one about the president who walks into a bar witha cable news reporter on his shoulders and the bartender asks him "what will you have ?" and the president says "a couple of trillion dollars, but don't worry, I'm going to cut the deficit in half!" Ha ha ha ha, get it? In half!! Oh, I kill myself with jokes like that.  
 
Source:  http://www.bloomberg.com/apps/news?pid=20601087&sid=az64zr5U0X.E&refer=home