Friday, April 24, 2009

Bank stress tests - guesstimates

Interesting article in today's Times by Eric Dash, in which the 19 banks in question are ranked in some order of health: Edgy Banks Start to Get Word Today on Stress Tests

Citing estimates by Frederick Cannon of Keefe, Bruyett & Woods, it seems "banks might need as much as an additional trillion dollars in capital"

Dash's list of banks is as follows:

Poised to withstand potential worsening of the recession:
  • Blackrock
  • Goldman Sachs
  • Morgan Stanley

Custodial banks with the worst behind them (taken their losses):

  • State Street
  • Bank of New York Mellon

Ditto, 'well-run commercial banks':

  • JPMorganChase
  • US Bancorp

'At the other end of the spectrum', need additional capital:

  • Citibank (duh)
  • Bank of America (duh)

Regional banks 'bracing for huge losses' (esp commercial loans):

  • Fifth Third
  • Sun Trust Banks
  • Regions Financial

'Uncertain category' depending upon what regulators decide:

  • American Express
  • Capital One
  • BB&T Bank
  • PNC Financial
  • Wells Fargo

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