WASHINGTON (Reuters) - The largest U.S. banks made the case to regulators on Monday that they have the financial firepower to withstand a deeper recession, as Bank of America denied a report it was trying to raise capital of $10 billion.
Banks and regulators were in tense discussions over the findings of so-called "stress tests" aimed at assessing whether the 19 largest firms have a sufficient capital cushion. Final results are expected to be disclosed on Thursday.
"Today is going to be a very key day in negotiations," a financial industry source said, speaking anonymously because the banks' discussions with regulators are not public. "Things are particularly tense."
U.S. officials are expected to brief banks on Tuesday on the results and on how they will be publicly unveiled.
A source familiar with the plans said the final results will come in a 150-page report on Thursday, and Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner will present the findings.
Banks found to be in need of more capital will have to embark on a recovery plan that could involve converting preferred stock, raising fresh private capital, or accepting government help -- assistance which comes with close scrutiny from Congress that will certainly be unwelcome on Wall Street. more...
Tidak ada komentar:
Posting Komentar