Fed Said to Ask Stress-Tested Banks to Submit Plans on TARP

Discussion in 'Wall St. News' started by ASusilovic, Nov 23, 2009.

  1. Nov. 23 (Bloomberg) -- The Federal Reserve asked nine of the U.S. banks that were part of this year’s stress tests to submit plans for repaying the government’s capital injections, a person familiar with the situation said.

    The central bank this month asked Bank of America Corp. and eight other banks to give plans including a timetable, said the person, speaking on condition of anonymity.

    The firms may have the option to repay the Troubled Asset Relief Program funds soon if they’ve been able to raise common equity recently and would continue to exceed capital buffers set in the stress tests, the person said.

    The banks in the stress test that have yet to repay TARP also include Citigroup Inc., Fifth Third Bancorp, GMAC Inc., KeyCorp, PNC Financial Services Group Inc., Regions Financial Corp., SunTrust Banks Inc. and Wells Fargo & Co.

    The request was reported earlier today by DealReporter.com, a news service that focuses on mergers and is part of Pearson Plc’s Financial Times Group.

    The Fed released results in May from stress tests that showed how the 19 largest U.S. lenders would fare in a slower recovery with higher-than-forecast unemployment. Ten companies including Bank of America, Wells Fargo and Citigroup needed to raise additional capital.


    How shall they do that ? "Steal" it from their customers ? :confused: