Updated from 3:55 p.m. EST
Financial stocks rebounded Wednesday, as big banks benefitted from the federal government's sharing more details about the "stress tests" it will employ to determine if they are sufficiently capitalized.
Bank of America
and more than a dozen other institutions that have received billions from the Treasury Department's $700 billion Troubled Asset Relief Program were subject to the tests, which were expected to be administered Wednesday.
The tests, part of the revamped
unveiled by Treasury Secretary Timothy Geithner earlier this month, will help regulators decide whether the banks may need additional assistance so that they can carry out the critical mission of boosting lending to customers, a key ingredient to the economic turnaround.
, in a statement Wednesday, said major U.S. banking institutions have capital in excess of what regulators consider
. By the end of April, regulators will look at how institutions with assets exceeding $100 billion would perform under two scenarios: the baseline conditions expected by economists and a more adverse condition.
Financial stocks were mixed in trading before regulators, including the Treasury, Fed and Federal Deposit Insurance Corp. issued press releases with details of the program, which Treasury Secretary Timothy Geithner had only broadly outlined earlier this month. In the afternoon, Citi were down 3.1% to $2.52 and BofA shares were up 9.1% to $5.16.
shares were up 3% to $13.44 and
shares were up 3.4% to $21.73.
shares cut earlier losses, but still were down fractionally to $89.92.
shares were up 1.4% to $21.76.
The NYSE Financial Sector Index recently was up fractionally to 2,596.61.
On the flip side,
, which cut its
late Tuesday, lost 5.7% to $17.57.
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