Only six banks fail the stress tests
So, who passed and who failed the stress tests? The good news is that only six banks "failed," according to Bloomberg. The problem is that we don't know who. Obviously, Citigroup and Bank of America top the list. Beyond them, we can only speculate. Most think that big regional banks with lots of exposure to commercial real estate are the best candidates.
Bloomberg notes a report by Morgan Stanley that named SunTrust, KeyCorp and Regions Financial as possible failure candidates. In a sense it's a relief that only six banks are thought to be in line for massive capital injections; it could have been a lot worse. But for these banks, there will be a stigma involved--and rightfully so. They have been tried and found to be lacking. That's the perception--fairly or not. The larger question is how can they possibly raise capital in this environment. Stay tuned, because more details are scheduled to be released the week of May 4, assuming there isn't another delay.
For more:
- here's the article
Related Articles:
Lose-lose for government on stress tests
Stress test result coming in two parts
Stress rises on the stress tests
Stress tests: High stakes showdown
Stress test details to be made public




Comments