Stress Test

The official results of the US stress-tests on 19 of the nation's largest financial institutions will be officially announced when the US equity markets close Thursday.

The banks which are required to raise additional capital will be given a month to provide the US Treasury and the Federal Reserve with their plans. The capital will need to be raised within a further 6 months. US authorities are hopeful that the firms will be able to raise the capital privately, either through new stock offerings or converting preference shares to common equity.

Another alternative is to sell assets to beef up the balance sheet. Although clearly not official yet, detailed below are what the media is claiming are leaked details of the results of the tests:

American Express - no capital required (Bloomberg)

Bank of America - $33.9bn (The New York Times)

Bank of New York Mellon - no capital required (The New York Times)

Capital One Financial - no capital required (The New York Times)

Citi - $5 - $6bn (The New York Times)

GMAC - $11.5bn (Reuters)

Goldman Sachs - no capital required (Bloomberg)

JPMorgan Chase - no capital required (The New York Times)

MetLife - no capital required (Bloomberg)

Morgan Stanley - $1.5bn (The Wall Street Journal)

Wells Fargo - $15bn (Bloomberg)

Regions Financial is also thought to be required to raise additional capital, but the amount has not been disclosed (The Wall Street Journal).