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

The five-minute complaint and the five-day investigation

The five-minute complaint and the five-day investigation

GSI Group CEO on complaints, AI and the latest set of FOS reforms

Mark Buck
clock 12 August 2026 • 5 min read
Andrew Goodwin: The advice gap - an embarrassment of riches?

Andrew Goodwin: The advice gap - an embarrassment of riches?

Andrew Goodwin: The advice gap - an embarrassment of riches?

Andrew Goodwin
clock 12 August 2026 • 4 min read
New Talent Alliance launches financial advice careers guide

New Talent Alliance launches financial advice careers guide

Designed to attract new entrants into the profession

Sophia Panayi
clock 11 August 2026 • 2 min read