Banks

The nation's biggest banks are regaining their health, but some need to replenish their coffers to withstand any new difficulties, the government said in an upbeat report Thursday. The Federal Reserve's highly anticipated "stress tests" found that 10 of the 19 largest banks needed to bolster their capital by a combined $75 billion. Most of that must be raised by two banks with a large California presence -- Bank of America Corp. and Wells Fargo & Co.

Even in the best of times, carrying a balance on your credit card is a risky -- and costly -- proposition. These days, it can be downright foolish, at least if there's a chance you might miss a payment or two. Millions of cardholders have recently received letters from the likes of Citibank, Bank of America Corp., Wells Fargo & Co. and American Express Co. notifying them that their interest rates are going up, in some cases to 30% if a single payment is missed. JPMorgan Chase & Co.

Leave it to the banks to try to turn passage of credit card reform legislation Tuesday into bad news for many cardholders. Here's the deal: Banks are basically saying that because they're going to have to change some lending practices to comply with the bill, they'll be facing greater risk.

The California Supreme Court unanimously overturned a billion-dollar class-action award against Bank of America Corp. on Monday, ruling that banks can collect overdraft fees from accounts in which government benefits intended for subsistence are directly deposited. The ruling threw out a 2004 verdict by a San Francisco jury that found the bank violated state law by taking fees for insufficient funds from accounts set up to receive Social Security benefits.

The slumping market for commercial real estate -- viewed by many as the next big shoe to drop on the economy -- now threatens to drag down regional banks as they struggle to collect on loans made against shopping centers and office buildings. Seriously overdue loans against commercial developments have shot up dramatically in recent months, as delinquencies snowball on construction loans and mortgages for office buildings, malls and apartments. That's bad for giants like Bank of America Corp.

Gideon Gono prints money, lots and lots of money that's worth next to nothing. Depending on whom you talk to, the architect of Zimbabwe's hyperinflation is a megalomaniac, a workaholic, a thief -- or the country's savior. Zimbabwe's central bank chief seems to have a finger in every government ministry. No project goes ahead without his approval. No underling approaches without fear and trembling.

People holding California state IOUs -- including taxpayers, vendors and local governments -- will soon have a tougher time redeeming them, as most major banks are standing firm on a vow not to cash the vouchers after today. Many credit unions say they will continue to redeem the IOUs for customers.

The House Ethics Committee is investigating Rep. Maxine Waters (D-Los Angeles), who has come under scrutiny because of her husband's ties to a bank that received federal bailout funds. The panel's chairwoman and ranking member announced the committee was extending by 45 days a determination on whether it would conduct a more thorough review of Waters' conduct, but they declined to say what was being investigated. Waters, one of Los Angeles' most enduring liberal politicians, also declined to comment.

Rep. Maxine Waters, one of Los Angeles' most enduring liberal politicians, has come under scrutiny because of bailout funds that went to a bank in which her husband had owned stock and served on the board. Waters was a senior member of the congressional committee dealing with the financial crisis when OneUnited Bank -- one of the nation's largest minority-owned institutions -- received $12 million in bailout funds.

As the watchdog of the government's massive bailout of the financial sector, Neil M. Barofsky had a simple question: What had the nation's banks done with all their bailout money? Can't be answered, said the Treasury Department, because of the way banks move money internally. The department declined to put the question to the banks.