Overallotment: May 5

• Just out: Bank Of America needs $34 billion in capital per latest leak (Reuters)
• Banks that want to exit TARP must be able to raise debt without FDIC (Bloomberg)
• BlackRock equities chief investment officer expects 11% S&P drop led by banks (Bloomberg)
• Brokers are abandoning Wall Street (WSJ)
• Reserve Primary Fund founder sued by SEC (Bloomberg)
• Financial Engineering/Alchemy 101 - turning toxic waste into AAA gold (The Barricade)
• Fed directors' ties to banks scrutinized (WSJ)
• Who regulates the regulators? (Sense on cents)
• The adaptive markets hypothesis and financial crisis (Perimeter Institute)
• At fallen mortgage titan, tragedy amid the turmoil (WSJ)

And as always, our sincerest gratitude to the ongoing show of support - both moral and in the form of donations: warmest thanks to Andrew, Bill, Bryan, Daniel, David, Donald, Elaine, Hassan, Lucian, Mike, Steve, Vincent, Vladimir, and William.