US banks ordered to raise $75bn

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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.

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