An American cattleman. After much bargaining with the largest banks in the United States,Treasury Secretary Tim Geithner announced the results of the Treasury's "stress tests," studies that estimate how the banks will fare if the economic crisis deepens. Ten banks, said Geithner, including Bank of America, Citibank, and Wells Fargo, must collectively raise $75 billion in extra capital by November; the rest, however, are fine. Analysts questioned Geithner's conclusions, which assume a worst-case unemployment rate of 10.3 percent when the current rate is 8.9 percent, and which, after banks complained, ended up measuring bank-capital levels with standards more forgiving than expected; Bank of America's potential capital deficit, for example, was finally pegged at merely $33.9 billion instead of the $50 billion initially projected.
Weekly Review
Weekly Review
Weekly Review
An American cattleman. After much bargaining with the largest banks in the United States,Treasury Secretary Tim Geithner announced the results of the Treasury's "stress tests," studies that estimate how the banks will fare if the economic crisis deepens. Ten banks, said Geithner, including Bank of America, Citibank, and Wells Fargo, must collectively raise $75 billion in extra capital by November; the rest, however, are fine. Analysts questioned Geithner's conclusions, which assume a worst-case unemployment rate of 10.3 percent when the current rate is 8.9 percent, and which, after banks complained, ended up measuring bank-capital levels with standards more forgiving than expected; Bank of America's potential capital deficit, for example, was finally pegged at merely $33.9 billion instead of the $50 billion initially projected.