After a weak of leaks, today’s bank stress test results are hardly surprising. From the Financial Times:
US regulators on Thursday directed the nation’s largest banks to add $74.6bn in additional equity following a three-month stress test designed to measure their ability to withstand an economic downturn.
The stress tests revealed that 10 of the 19 banks involved in the analysis carried out by government will need more common equity.
Bank of America, Wells Fargo, GMAC and Citigroup will need to raise $33.9bn, $13.7bn, $11.5bn and $5.5bn, respectively. However, JPMorgan Chase, Goldman Sachs, American Express and State Street will need to raise no additional capital.
Each bank that has been told to raise additional equity will have until June 8 to present a plan to regulators explaining how it intends to do so and until November 9 to put the plan in place.
Find the entire report here (the good stuff starts at page 10).
