More than half of the giant banks being "stress-tested" by the US government could be required to raise additional money to recapitalise the nation's financial system, survive a long recession and boost lending that will kickstart the economy.
With the results of the tests due to be published tomorrow evening, officials are continuing their final discussions with the 19 institutions, The Independent reports. Several are believed to have argued the Treasury out of their original demands, but about 10 are still expecting to be told to raise money. Ben Bernanke, the chairman of the Federal Reserve, one of the regulators working with the Treasury on the tests, said yesterday that repairing the banking system was vital if the early signs of economic recovery were not to be snuffed out. Full story...
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