Regulatory authorities in Washington have announced that 10 banks are in need of additional capital in the amount of $74.6 billion to restore confidence in the banking sector and to survive the recession, write Reuters.
The results of stress tests, organized by the U.S. central bank, Federal Reserve have drawn a line between the banks with a better financial situation and those facing problems, indicating the amounts they need to stabilize finances.
The tests have shown that 10 banks needed additional capital to make against future losses, if the recession will worsen. Bank of America needs 33.9 billion U.S. dollars, while Citigroup needs 5.5 billion dollars.
Also, Wells Fargo must collect 13.7 billion U.S. dollars, and GMAC 11.5 billion U.S. dollars. Obama Administration hopes that these banks will fill gaps from private sources, although the Fed chief, Ben Bernanke, said that the government is prepared to take action, if it’s necessary.
“Government, through Treasury, is prepared to provide additional capital necessary to ensure that the bank will cross this tough economic period, “said Bernanke.
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[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
[...] Ten U.S. banks need additional capital | Home Loan Advices [...]
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