OK, we've got our first estimate from the "stress test" rumor mill of the number of banks that will have to raise additional capital: "about" 10 of the 19. So say Reuters and the Wall Street Journal. No word on precisely which banks those are, although Bank of America, Citigroup, Wells Fargo and PNC Financial are among the names that have been reported. The full list should be announced Thursday.
The Journal adds another intriguing detail: "At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses ..., but that number has fallen in recent days." That would seem to indicate that the back-and-forth between the banks and regulators over the past week has resulted in modification to the initial results.
It remains unclear whether these 10 or so banks will need more government money as a result of the tests. The Journal only ventures that "administration officials" are "optimistic" that "the bulk of the money will come from private investors."
Other links:
Citigroup Eyes New Ways to Pay Employees (Reuters)
Chrysler Union Taking Big Risk, Its Chief Says (NYT)
Chrysler Gets Green Light for Federal Loans (WaPo)
House Will Vote on Creating Financial Crisis Commission (Roll Call)
Credit Card Reform Tests Banking Industry Sway (Wash. Independent)
Program to Unfreeze Credit Receives a $10 Billion Boost (WSJ)
