Stress Test Results Released!

And they’re out…

In total, the banks need $74 billion more in tangible common equity.

Some of the notable in terms of individual banks include Citigroup needing $5.5 billion, Bank of America (BAC) needs $33.9 billion as expected and Wells Fargo (WFC) needs about $15 billion.

JPMorgan (JPM) needs none. State Street needs none.

The big remaining risk area: credit cards.

If there’s a verdict here, it’s that the results were better than expected, a testament to a job well done in terms of spin. Citi’s number, for example, is about half of what had been reported, and the stock is up about 10% after hours. State Street is also up 10%.

As for some snap reactions, Citigroup has already said that it’s expanding the preferred-to-common conversion by $5.5 billion, so that’d signal an end to their capital raising needs. Bank of America (BAC) on the other hand says that they’re already tracking better than what the Fed had been looking for, taking a more combative tack on the results.


Stress Test Results
Stress Test Results John Carney

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