The tension is palpable in the TARP bank industry. The likes of Citigroup, Bank of America and others spent Monday pleading their cases to regulators, arguing that they are better capitalized than the early reports would suggest. Tuesday, Treasury officials will inform them exactly on the results and brief them on what and how the information will be made public, reports Reuters.

The tests will be delivered to the public May 7, barring yet another delay. In the end, the anxiety may have been a bit overwrought. David Trone, a Fox-Pitt Kelton bank analyst, told Reuters he expects a few banks to be found in need of more capital, but he expects the shortfalls to be modest . "Bank stocks won't collapse." My sense is that the banks will be able to raise the additional capital within six months. Mr. Market seems to agree. But you never know.

For more:
- here's the Reuters article

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