Stress Tests Show 10 Banks Need More Capital

2009-05-09 04:17:22 (GMT) (WiredPRNews.com - Business, News)

Several banks are reported to require more capital to sustain a deeper recession

The government’s stress tests have reportedly shown that 10 leading banks will require billions in more capital for sustainability.

Wired PR News – Recent government stress test results of the largest financial institutions in the US have shown 10 would require billions in more capital for sustainability through a deeper recession. As reported by the Associated Press (AP), results issued Thursday by the Federal Reserve revealed that the ten banks combined would require $75 billion more to withstand a deeper recession.

As noted by the AP, nine banks were shown in the report to not require additional funds. Those listed among the ones who do include Bank of America, Wells Fargo, and Citigroup Inc. The banks must meet a June 8 deadline for creating a plan for dealing with their shortfall. The government is noted in the report to have expressed a willingness to offer additional bailout assistance if necessary.