Bank Stress Test Results

At the end of the day the Bank Stress Test Results are due out however some early bank stress test results were leaked.  There are 19 banks being stress tested.  Some well known names are Wells Fargo, JPMorgan Chase, Bank Of America and Morgan Stanley.  The bank stress test projects how these 19 banks would do if the recession continued as is and also if it worsened.  This was done to determine which banks were considered healthy and which needed to improve things such as capital to handle projected stress.  The results are projected to reveal that possibly 1/2 of the banks in the stress test will be asked to raise additional capital.

 Banks failing the stress test would have six months to improve their results by obtaining more money privately.  The government has stated it would not let banks fold but would be firm in ensuring that banks shore up needed capital to ensure they provide better bank stress test results in the future.  On May 7 investors grew wary as stocks were down on the Dow 1.39% mid day and on the Nasdaq 2.72%.