The Associated Press
WASHINGTON – Leaked results of the government’s stress tests of 19 large banks are boosting investor confidence in the financial sector.
American Express Co., JPMorgan Chase amp& Co. and Bank of New York Mellon Corp. will not be asked to raise more capital when federal officials announce the test results this afternoon, but Regions Financial Corp. will need to bolster its reserves, according to people briefed on the results. The people requested anonymity because they were not authorized to discuss the results.
Citigroup Inc. will need to raise about $5 billion, according to a government source who requested anonymity because he was not authorized to discuss the matter. Earlier news reports put that number closer to $10 billion. Bank of America Corp. and Wells Fargo amp& Co. also will be asked to raise capital, sources said.
The stress tests were designed to see how large banks and finance companies would fare if the economy worsens.
Analysts expect about half the companies will be asked to raise capital.
The government wants the firms to have enough money to keep lending even if the economy gets much worse. Officials have said none of the banks will be allowed to fold.