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The U.S. Federal Reserve's Stress Test Results: The Beginning Of The End Or The End Of The Beginning For U.S. Banks? May 09 Product Image

The U.S. Federal Reserve's Stress Test Results: The Beginning Of The End Or The End Of The Beginning For U.S. Banks? May 09

  • ID: 1790854
  • May 2009
  • Region: United States
  • Standard & Poors

FEATURED COMPANIES

  • Ally Financial Inc.
  • Bank of America Corp.
  • Citigroup Inc.
  • Fifth Third Bancorp
  • KeyCorp
  • Morgan Stanley
  • MORE

Abstract
The much-anticipated results of the stress-testing exercise the Federal Reserve Bank (Fed) undertook for the top banks in the U.S. came out on May 7, 2009. These show that 10 of the 19 largest banks need a total of $75 billion in capital to maintain at least 4% of common equity Tier 1 capital if the environment becomes a lot more adverse than experts currently expect. This compares to Standard & Poor's Ratings Services' assessment of an $18 billion need for these 19 banks. Despite the significantly higher capital requirements determined by the Fed's stress tests as compared to our stress tests, we do not see this as an unmanageable amount, and most management teams of the identified banks promptly...

Companies mentioned in this report are:
- Regions Financial Corp.
- Ally Financial Inc.
- Bank of America Corp.
- Wells Fargo & Co.
- PNC Financial Services Group
- Fifth Third Bancorp
- SunTrust Bank
- KeyCorp
- Morgan Stanley
- Citigroup Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured READ MORE >

Note: Product cover images may vary from those shown

- Regions Financial Corp.
- Ally Financial Inc.
- Bank of America Corp.
- Wells Fargo & Co.
- PNC Financial Services Group
- Fifth Third Bancorp
- SunTrust Bank
- KeyCorp
- Morgan Stanley
- Citigroup Inc.

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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