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Bank by bank breakdown of stress test results

UPDATE: These are the actual results:

Ten of the 19 largest U.S. financial institutions will be required to raise a combined $75 billion in capital, as the U.S. government for the first time divided healthy banks from those which may need help to weather a worsening economy.

U.S. officials stressed that the move to bolster capital needs to occur across the banking industry, not just at the 19 largest firms. Treasury Secretary Timothy Geithner said the department will reopen programs to make capital available to banks of all sizes, suggesting the U.S. government’s intervention in the financial markets could go on longer than expected. “It’s very important that the rest of the system has the access to capital,” Mr. Geithner said.

Appearing alongside Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency John Dugan, Mr. Geithner said indications from banks was that they are “reasonably confident” they can raise the needed capital.

Mr. Bernanke said the results show that the quality, more than the quantity, of capital at the banks is what needs to be improved.

“The results released today should provide considerable comfort to investors and the public,” Bernanke said, saying definitively that the tests were “not tests of solvency.”

Bank of America Corp., Citigroup Inc., Wells Fargo & Co., GMAC LLC and Morgan Stanley were told they need to raise capital due to the results of the government’s stress tests. Regions Financial Corp., Fifth Third Bancorp, KeyCorp, PNC Financial Services Group Inc. and SunTrust Banks also were told to bolster their reserves.

By contrast, J.P. Morgan Chase & Co., Goldman Sachs Group Inc., American Express Co., BB&T Corp. , State Street Corp., MetLife Inc., Bank of New York Mellon Corp., US Bancorp and Capital One Financial Corp. don’t need to raise additional capital. Bank of America must raise nearly $34 billion in capital, more than any of its peers. All 10 banks will need to raise Tier 1 common capital to bolster their reserves.

I will have more to say after I look a bit deeper.  Below is the actual Fed document.  Followed by the original post about what would be expected.

Stress Tests Results (pdf) – Federal Reserve

The Wall Street Journal has a bank by bank breakdown of the stress tests. Here is the lead-in of what they expected  (emphasis added):

With the government’s stress tests under their belts, the nation’s 19 biggest banks likely will start racing to raise required capital or repay the funds they received under the Troubled Asset Relief Program. Among companies told they need at least $65 billion of fresh capital, the lucky ones will be able to tap the public markets or convert preferred shares into common equity. Those that can’t will find themselves with few options. They will either need to tap the government’s coffers for additional capital or sell valuable assets. Few analysts see an immediate rush into mergers and acquisitions, particularly since buyers remain scarce. Although rising unemployment will likely continue taking a big bite out of bank balance sheets this year, there is a growing sense that the banking system will be able to absorb those losses. Still, a run on deposits or sudden liquidity drain could prompt the government to force consolidation. Here is a company-by-company breakdown of the expected results for the 19 banks that underwent a government stress test, as well as indications of where they will go from here:

See the rest of the article at the link below.

Source Raising Capital After Stress Tests – WSJ

About 

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.