US banks ordered to raise $75bn

clock

US banks must raise around $75bn to meet new capital requirements outlined by regulators, following yesterday's stress test results.

In total, 10 companies have been ordered to raise money, with Bank of America needing $33bn and Wells Fargo $13.7bn. The test was designed to ensure banks have sufficient capital to continue lending in difficult economic circumstances, US Treasury Secretary Tim Geithner says. The scenario tested for assumed losses of nearly $600bn across the country's 19 largest banks during 2009 and 2010. BofA says it will raise the money by selling equity and assets, while Wells Fargo and Morgan Stanley have announced $6bn and $2bn rights issues respectively.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Origo launches LoA consortium with four major providers

Origo launches LoA consortium with four major providers

Aviva, L&G, Royal London and Scottish Widows

Jenna Brown
clock 18 May 2026 • 2 min read
Editor's view: Pensions IHT alarm bells – when people become process

Editor's view: Pensions IHT alarm bells – when people become process

The go-live date for inheritance tax (IHT) on unused pension funds is edging closer, and this week saw HMRC bring some clarity on what to expect.

Jen Frost
clock 15 May 2026 • 3 min read
Feel Good Friday: Castlefield partner expands not-for-profit refill hubs across Cheshire

Feel Good Friday: Castlefield partner expands not-for-profit refill hubs across Cheshire

Project run by Eco Communities

Professional Adviser
clock 15 May 2026 • 1 min read