'Fast Money' Recap: The Next Step for the Financials

Bank stocks moved higher in after-hours trading Thursday after the release of the long-awaited stress test results.

The Dow Jones Industrial Average fell 102.43, or 1.2%, to 8,409.85, while the S&P 500 lost 12.14, or 1.32%, to 907.39. The Nasdaq sank 42.86, or 2.44%, to 1,716.24.

Much of CNBC's "Fast Money" TV show was devoted to an analysis of the impact of the stress tests, which were released after the markets closed.

Steve Liesman, a CNBC reporter, provided a quick overview of the results. He said that 10 of the 19 major banks need to add $74 billion of common equity to withstand the government's adverse scenario. He also the banks are expecting $600 billion in losses in 2009 and 2010.

The results showed that Citigroup (C Quote) needs to raise $5.5 billion in capital while Wells Fargo (WB Quote) needs to add $13.7 to its capital buffer.

Meanwhile, so-called "good" banks like JPMorgan(JPM Quote) came through the tests without needing to raise more capital.

According to Leisman, Fed Chair Ben Bernanke said the results should provide considerable comfort to investors and the public.

The markets reacted favorably to the results in after-hours trading, with the S&P futures rising higher and stocks such as Citigroup and State Street (STT Quote) sharply higher.

Guy Adami said the next step following the release of the results will be a parade of secondary offerings by banks to shore up their capital base to levels demanded by the government. He said the interesting question here is how these bank stocks will trade during this round of secondary offerings.