Fed Says 10 Banks Have Submitted Capital Plans
09 June 2009 - 5:11PM
Dow Jones News
The Federal Reserve says the 10 banks required to bolster
capital buffers have submitted plans that would provide sufficient
capital.
"The 10 banking organizations required by the Supervisory
Capital Assessment Program to bolster their capital buffers have
all submitted capital plans that, if implemented, would provide
sufficient capital to meet the required buffer under the
assessment's more-adverse scenario," the Fed said Monday.
"As supervisors, we will be working with the institutions to
ensure their plans are implemented quickly and effectively," the
Fed said. "Supervisors also continue to work with all regulated
financial institutions to review the quality of their
corporate-governance, risk-management and capital-planning
processes."
The Treasury Department last month said 10 of the 19 largest
U.S. financial institutions will be required to raise a combined
$75 billion in capital.
Bank of America Corp. (BAC), Citigroup Inc. (C), Wells Fargo
& Co. (WFC), GMAC LLC and Morgan Stanley (MS) were told they
need to raise capital due to the results of the government's stress
tests. Regions Financial Corp. (RF), Fifth Third Bancorp (FITB),
KeyCorp (KEY), PNC Financial Services Group Inc. (PNC) and SunTrust
Banks Inc. (STI) also were told to bolster their reserves.
By contrast, JPMorgan Chase & Co. (JPM), Goldman Sachs Group
Inc. (GS), American Express Co. (AXP), BB&T Corp. (BBT), State
Street Corp. (STT), MetLife Inc. (MET), Bank of New York Mellon
Corp. (BK), US Bancorp (USB) and Capital One Financial Corp. (COF)
don't need to raise additional capital.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com