Morgan Hedge | Hedge Fund Database

Fed to deliver results of stress test

Date: TUE, MAY 05 2009
Topic: News

The Federal Reserve plans to deliver results of stress tests on U.S. banks to executives today. The test is expected to show that 10 companies need additional capital to weather a deeper recession.

Banks are formulating plans for filling their capital requirements, much of which could come from conversions of preferred shares. Many of the 19 lenders under review and the government are set to discuss publicly the examinations after markets close May 7.

Last week, the Fed delayed the release of the tests, originally scheduled for yesterday, as banks challenged some of the conclusions.





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