• Not such good news for Bank of America and Citigroup this morning: It looks like both have come up short on the so-called stress tests conducted by regulators and may be forced to raise billions in additional capital. [WSJ]
• Will Ken Lewis hang on as Bank of America's CEO when shareholders meet this week at the bank's annual meeting? It's a toss-up at the moment. [NYT]
• The Justice Department is investigating three AIG execs for committing securities fraud and a range of other financial crimes. [CBS News]
• The SEC is investigating 150 hedge funds, including various "Ponzi schemes and misappropriations," according to the agency's chief Mary Schapiro. [DB]
• Not such a hot idea: Mary Schapiro says she's now Twittering. [LAT]

• More on John Thain's ignominious departure from BofA. [WSJ, BN, NYT]
• Mary Schapiro was approved by the Senate to head the SEC. [DB]
• Citi is remaking its board and is ousting Ken Derr and Franklin Thomas. [FT]
• Some investment bankers are keeping busy: Pfizer is in talks to acquire Wyeth in a deal that could be valued at more than $60 billion. [WSJ, BN]
• Wesley Edens' Fortress is returning cash to investors. [WSJ]
• Marc Dreier will need to post a $20 million bond to walk out of prison. [NYT]
• Job cuts in UBS's investment banking division come next month. [AP]
• Rumor has it additional layoffs at Goldman are coming, too. [Dealbreaker]

• The Journal is reporting that GM and Chrysler have resumed merger talks, although both companies have denied it. Chrysler has, however, said that it plans to shut down production for a month. [WSJ, Bloomberg, DB]
• Morgan Stanley employees will see bonuses drop by half this year. [NYP]
• Partners at Goldman Sachs may see bonuses fall by 80 percent. [FT]
• Mary Schapiro will head up the SEC in the Obama administration. [MW]
• More on the efforts to expose Bernie Madoff many years earlier, concerns that were brought to the SEC and ignored. [WSJ]
• Real estate execs in NYC have been particularly hard hit by Madoff. [NYT]
• What to do if you lost a fortune to Bernie Madoff? Sue someone. [FT, NYP]