On Thursday, Wells Fargo announced that it had a record first quarter, sending its shares soaring 32%. While other financial institutions are expected to post strong first-quarter data, the results that truly matter are those of the government's "stress tests," which will not be revealed until the end of the month. Treasury Secretary Timothy Geithner has said some lenders will likely need substantial sums of capital. "There will be a pregnant pause until the outcome of the stress test is known," said Dino Kos, a managing director at Portales Partners. "The test is ultimately about who gets diluted and how much."
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