Thursday, May 7, 2009
The official release isn't expected until after the markets close, but leaked results from bank stress tests suggest some of the nation's largest banks need to raise more money.
But the Obama administration is downplaying concerns about the need for more cash.
The tests were designed to gauge whether any of the nation's 19 largest banks would need more capital to survive a deeper recession. Regulators have told Wells Fargo, Citigroup and Bank of America they all need billions more.
Stress tests are normally done in private, but it's different this time.
Critics are concerned that regulators seem so intent on maintaining public confidence in the banks that the results will have to say the banks are basically healthy.
The results appear to be good enough so that President Barack Obama will not have to ask Congress for more bailout money -- which lawmakers aren't likely to hand over easily.