Fed's to unveil bank stress test results: recession proof
May 07, 2009 | Comments 0
Today will see federal regulators unveil a picture of what the U.S. banking system is able to withstand, it will see how much stress it can take that the current recession may inflict on it. The picture will be formed once a handful of institutions add to their capital base.
Bloomberg explains that the Federal Reserve stress tests 19 of the biggest lenders shows that show Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. require $54 billion. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of New York Mellon Corp. at the same time have enough capital to help prop up flows of credit to businesses.
Yesterday saw bank stocks surge, this was in anticipation that firms will not need as much capital once they are protected. We saw the Standard & Poor’s 500 Financials Index rallied 8 percent.
Filed Under: Business News