6 largest US banks need to raise $120 bn?

According to Reuters, 6 of the largest US banks need to raise $120 bn in cash in order to shore up their finances so that they can "better withstand another crisis by turning some of their debt, particularly debt issued by their holding companies, into equity without disrupting markets or requiring a government bailout."

Rough translation: the Fed knows that these con men have been generating massive profits with high leverage which is hidden from normal audits and reporting requirements by the use of holding companies.  Back when I was a kid they used to call them "shell companies" but now I guess "holding company" sounds more legit.  Trust me, it's not legit and trusting and therefore gullible (not stupid) people the world over will be "shocked" when the skeletons come tumbling out of the closet.  The crap we are going to find out about will make the Volkswagon scandal look like back page news.

But the fat lady has not sung on this yet and so we just patiently wait.  In the meantime, it might be nice to know where will they get this cash?

Simple: where do you always get cash from in a debt Ponzi?  Not from working for it, that's for sure.  No, you get it by issuing debt.  

So essentially the collapsing credit of their shell companies are forcing the big banks to essentially move some of that leveraged debt back onto their own books where the interest rates will still be lower.  How do we know that the shell company credit is collapsing?  Simply by looking at the chart of the JNK ETF below.  It shows that junk bond prices are under pressure meaning interest rates for junk debt are rising.  Junk debt is leveraged, risky debt.  Big banks create "holding companies" to lend out trillions in risky debt in order to be able to charge higher rates which are needed to fund the wall st funny money party.  The big banks are nothing more than establishment fronts for all sorts of risky and illegal activity including lending of junk debt, laundering of drug money and gun running money, etc.  In other words, they are the camouflage, the marketing organization if you will, for massive organized crime operations.

Laugh now at the Crazy Captain but I'm right about this.  You know how I know?  Because it's exactly what I would be doing if I were a morals free fucking asshole elitist abuser of people like they are.