Government stress tests show 10 banks must raise $74.6 bln in capital by November

[m22au]

http://tampabay.bizjournals.com/tampabay/stories/2009/05/04/daily65.html?ana=yfcpc

The nine banks already well capitalized under the SCAP study are:

American Express Co. (NYSE: AXP);

BB&T Corp. (NYSE: BBT);

Bank of New York Mellon Corp. (NYSE: BK);

Capital One Financial Corp. (NYSE: COF);

The Goldman Sachs Group Inc. (NYSE: GS);

JP Morgan Chase & Co. (NYSE: JPM);

MetLife Inc. (NYSE: MET);

State Street Corp. (NYSE: STT); and

US Bancorp (NYSE: USB).

The ten banks being required to raise additional capital are:

Bank of America Corp. (NYSE: BAC), $33.9 billion;

Citigroup Inc. (NYSE: C), $5.5 billion;

Fifth Third Bancorp (NYSE: FITB), $1.1 billion;

GMAC LLC (NYSE: GJM), $11.5 billion;

KeyCorp (NYSE: KEY), $1.8 billion;

Morgan Stanley (NYSE: MS), $1.8 billion;

PNC Financial Services Group Inc. (NYSE: PNC), $600 million;

Regions Financial Corp. (NYSE: RF), $2.5 billion;

SunTrust Banks Inc. (NYSE: STI), $2.2 billion;

Wells Fargo & Co. (NYSE: WFC), $13.7 billion.

 

[Daal]

Even the banks stocks well capitalized are not even close to being out of the woods. Eventually the market will wake up to the fact that there are NO earnings backing those stocks till the end of 2010, maybe even 2011
http://macrospeculations.blogspot.com/2009/05/bernanke-bank-analyst.html

 

[m22au]

Wikipedia article about stress tests

http://en.wikipedia.org/wiki/Supervisory_Capital_Assessment_Program

Interesting to see the different performance of these 19 financials over the last few months.

Eg. Government Sachs has gone from strength to strength, whereas today KEY broke down to levels not seen since 1991.

 

[m22au]

Update on KEY: down 6% premarket to $4.43.

Probably not enough to be a big bad story as yet, but it's interesting to note that while the S&P 500 reached a multi-month high yesterday, KEY dropped to a multi-year low.