Seven Banks Told to Increase Capital: Report
The
Federal Reserve
has told at least seven of the nation's biggest banks to increase their capital levels, while another six won't be told to raise additional capital, a report says.
Regulators have told
Bank of America
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it must take steps to address a roughly $34 billion capital shortfall, according to the
Wall Street Journal
, while
Wells Fargo
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needs $13 billion to $15 billion. The
Journal
reports
GMAC
needs $11.5 billion;
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Citigroup
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, $5 billion; and
Morgan Stanley
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, $1.5 billion.
Regions Financial
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and
State Street
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also need more capital, the newspaper reports.
These financial institutions, of a total of 19, won't be told to raise additional capital, the
Journal
reports:
JPMorgan Chase
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,
Goldman Sachs
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,
MetLife
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,
American Express
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,
Bank of New York Mellon
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and
Capital One Financial
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. The
Journal
story cited people familiar with the matter.
Results for the remaining six banks couldn't be learned, but analysts and investors expect several of them to face sizable capital holes, the
Journal
notes.
Final results of the government's stress will be released after the close of trading Thursday.
Any bank needing more capital will have until June 8 to develop a plan and must implement it by Nov. 9, the
Journal
reports.
Bank of America will outline its strategy Thursday, according to people familiar with the matter, the
Journal
reports. The bank says it doesn't need government capital and that it has a number of options.
