No American bank, as shown by the results of stress tests are not at risk of bankruptcy, said Finance Minister Timothy Geytner.
The
results of stress tests on 19 U.S. banks will be issued later in the
week. Tests are expected to show that, in order to maintain the
finances of some banks, we need tens of billions of dollars. According
to the forecasts of the largest amount required Citigroup and Bank of
America.
Reports said that Citigroup, might need more than 50
billion dollars, while Bank of America may need to be found in the
additional 34 billion.
Wells Fargo and GMAC, the financial unit of
General Motors, may also be required to find the extra cash, projected
New York Times, 19 banks in total, will need less than $ 100 billion
total - less than some had feared.
Stock markets around the world hoped that the results of stress tests can be a turning point in financial crisis.
American
banks are being tested that had the U.S. government and the Fed has the
information whether the banks enough cash reserves to cope with the
deterioration. The results would improve the transparency and
confidence in the banking system, "he said. Geytner said that he
believed that most banks will be able to find money from private
sources, but if they were unable to do so, the Government may have to
give them more of taxpayers' money.
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