Bank Stress Test Results
Breaking down the bank stress tests results.
At long last, the Federal Reserve released the results of its bank stress tests. After a series of leaks, the report contained few surprises, with 10 out of 19 banks ordered to raise a combined total of $74.6B and projected total losses under an adverse testing scenario coming in at around $600B. Officials hope the private sector will step up to help banks close capital gaps. Optimists viewed the findings as a sign that the worst of the banking crisis is over, but questions remain about the tests’ rigor, especially considering the Fed scaled back some loss projections after being pressured by banks. Analysts also wonder about the health of the rest of the roughly 8,000 banks in the country and the possibility of writedowns at small-cap banks.
Here’s the breakdown of capital shortfall, or lack thereof:
- American Express (AXP): $0 (+2.8% after hours)
- Bank of America (BAC): $33.9B (+9.0% AH)
- BB&T (BBT): $0 (+4.7% AH)
- Bank of New York Mellon (BK): $0 (+4.4% AH)
- Capital One (COF): $0 (+3.4% AH)
- Citigroup (C): $5.5B (+6.8% AH)
- Fifth Third Bancorp (FITB): $1.1B (+21.8% AH)
- GMAC: $11.5B
- Goldman Sachs (GS): $0 (+2.1% AH)
- JPMorgan (JPM): $0 (+1.8% AH)
- KeyCorp (KEY): $1.8B (+9.1% AH)
- MetLife (MET): $0 (+3.0% AH)
- Morgan Stanley (MS): $1.8B (-0.5% AH)
- PNC Financial (PNC): $0.6B (+3.4% AH)
- Regions Financial (RF): $2.5B (+8.4% AH)
- State Street (STT): $0 (+8.6% AH)
- SunTrust Banks (STI): $2.2B (+2.9% AH)
- U.S. Bancorp (USB): $0 (+7.2% AH)
- Wells Fargo (WFC): $13.7B (-2.4% AH)
via Wall Street Breakfast — Seeking Alpha.
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