Financial Markets and Stress Tests

231796 Resource 128460 120646 120646 1241804075793 1241804075793 Controlled Bank Stress Tests: 10 Banks Need More Capital

Stress tests shrugged off by financial markets

The <a href="http://www.stockmarketfunding.com/SMF-Blogs/Economic-Analysis/May-2009/Fed-Finds-10-U-S--Banks-Need-Total-Capital-of-$74B.aspx" target="_blank" title="bank stress tests, financial markets, stress tests, U.S. dollar, forex trading, banks, bailout">results of the banks stress tests</a> undertaken by the Treasury Department have been officially released (yesterday), and they aren't especially surprising. 10 of the 19 biggest banks surveyed have been found to need capital. However, these banks aren't in such bad shape that they aren't capable of surviving. Combined, the 10 banks are expected to need close to $75 billion. The banks that the government says are in need of capital include: <ol> <li>Bank of America, $33.9 billion.</li> <li>Wells Fargo, $13.7 billion.</li> <li>GMAC, $11.5 billion. </li> <li>Citigroup, $5.5 billion.</li> <li>Regions Financial, $2.5 billion.</li> <li>SunTrust, $2.2 billion.</li> <li>Morgan Stanley, $1.8 billion.</li> <li>KeyCorp, $1.8 billion. </li> <li>Fifth Third, $1.1 billion.</li> <li>PNC, $600 million.</li> </ol>These banks are expected to create plans to raise capital in order shore themselves up. Implementation deadline is November 9, 2009. A great deal of this was expected, and so the financial markets reacted by largely shrugging the results off. Additionally, things aren't that bad (<a href="item/230037" target="_blank" title="bank stress tests, financial markets, stress tests, U.S. dollar, forex trading, banks, bailout">stress tests have been analyzed</a> in such a way as to present a reasonably sound picture while issuing warnings), and investors are certain that none of these banks will be allowed to fail. 9 application/xml false bailout bank stress tests banks financial markets forex trading stress tests U.S. dollar Financial Markets and Stress Tests Forex trading and economic data http://www.fx360.com/?aid=5704 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.10) Gecko/2009042315 Firefox/3.0.10 GTB5 127.0.0.1 127.0.0.1 mmarquit 63.248.1.10 false true false false true 128460 blog blogsite/GFTForex/web