Report: At Least 3 Banks Pass Stress Test

American Express, JPMorgan Chase, Bank Of New York Mellon Don't Need To Raise Extra Cash, Sources Say

(CBS/AP)  The results won't officially be made public until tomorrow, but there's word that at least three of the nation's 19 largest financial institutions have passed government stress tests.

According to people briefed on the results, American Express, JPMorgan Chase and Bank of New York Mellon will not be asked to raise more capital.

The names of at least three who will be asked to do so are also circulating. Sources tell The Associated Press that Citigroup, Bank of America and Wells Fargo are on that list.

In all, analysts expect about half the companies will be asked to raise capital.

The stress tests are a centerpiece of the Obama administration's plan to stabilize the financial industry. They're designed to measure how the large banks and finance companies would fare if the unemployment rose to 10.3 percent and home prices dropped an additional 22 percent.

The government wants the firms to have enough money to keep lending even if the economy gets much worse. Officials have said none of the banks will be allowed to fold.

Meanwhile, banks that want to pay back their federal bailout funds and free themselves from government restrictions on compensation and dividends will have to sever their ties to another financial assistance program, officials said.

Financial firms eager to return infusions from the $700 billion Troubled Asset Relief Program will have to demonstrate that they can operate without debt guarantees provided by the Federal Deposit Insurance Corp., a senior government official said Tuesday. The FDIC program allows financial institutions to borrow money at lower costs.

The new requirement will make it harder for some institutions to get out from under government rules attached to the bailouts, another shift in a changing landscape for banks. It also illustrates the government's desire not to have banks abandon the bailout program if they are not financially prepared to do so.

[babooph]

All these failed idiot "bankers" need these massive paychecks for their failures-The propaganda system has no news of failed Chinese banks-lets "OUTSOURCE" their bankers,lobbyists ,"NEWSMEN" ,&politicos,why stop at middle class labor ???!!!

[rsmik]

Give me a billion dollars and I'll pass a stress test also

[stn_sage]

I don't know---what if any---these so-called 'stress tests' have---or if there primary purpose is just to make the public believe that "some" measure of stability is being applied to determine solvency of banks! In other words, they act as a "slight of hand"!

But, the article states that ONLY three of nineteen banks passed these "tests"! WHICH, isn't good!

But, if the point is: to demonstrate that---therefore, even MORE money needs to be given away to them---my response is, NO IT DOESN'T! Let some of them fail! Clear, them out of the system!

They'll reorganize under bankruptcy, be bought by a bigger, solvent bank, and be back in operation! The public doesn't have to be burdened with bailing them out, it's NOT necessary!

[whitemale08]

JP MORGAN HAS MORE WORTHLESS DERIVATIVES AND CREDIT-DEFAULT SWAPS THEN ANY OF THESE SILLY COMPANIES!!!

QUIT BEING SUCKERS AMERICA!!!

YOU'RE SQAUANDERING TRILLIONS THAT COULD BE USED FOR JOBS AND HEALTHCARE ON STUPID BAILOUTS FOR THE RICH!!!!

[whitemale08]

FOLKS...DON'T BELIEVE A DAMN WORD THIS ARTICLE SAYS!!!!

IT'S ALL A PACK OF LIES!!!

GO TO THE FEDERAL RESERVE WEBSITE AND LOOK AT THE TRILLION DOLLAR EXPOSURE TO WORTHLESS DERIVATIVES ON JP MORGAN'S BALANCE SHEETS!!!!

THESE STRSS-TESTS ARE ABSOLUTE FRAUDS!!!

WAIT 'TILL OBAMA SAYS 'OOOOPS! ...NO MONEY FOR HEALTHCARE OR HOSPITALS FOR THAT MATTER'!

AND WHEN THAT HAPPENS REMEMBER WHERE YOU HEARD IT FIRST!

Mark my words.

[clcmm36]

Prompt Corrective Action Law, passed by George H. W. Bush after the savings and loan crisis, which mandates that severely undercapitalized banks be promptly put into receivership is a mandate which the Bush Administration did not enforce at the beginning of the banking crisis last year and the current administration needs to enforce.

[lami987]

It is now time to break up all those big banks and corporations and make them all not too big to fail.

[greeneyedblon]

Not wait just a minute, how are they going to raise capital? More money out of my pocket? BULL

[g517]

It was not the Banks that made the problem.

It was Wall street Hedge funds with no restrictions on loans and hiding it in CDOs that caused the problem. It was the federal regulators that did not audit and examine them because Congress did not give them the power. And that is not being fixed.

It was also the rating companies giving AAA to something they could not understand.

It was the Govermnet for pushing to let everyone borrow money for housing with no abilty to pay.

Lets fix the blame where it belongs - CONGRESS. And they are still at it, wanting to giving money away with no restrictions.

[inventagod]

Kudos! to James_for_Today and WITHINMEANS !

[WITHINMEANS]

Posted by Rowdy108 at 12:08 PM : May 6, 2009

You have so little to say and it doesn't even have anything to do with the article.

Are you too stupid to be capable of staying with what is being discussed or so stuck in your petty little rut to be able to actually contribute to the discussion?

Please try to come up with something that makes sense before you waste anymore space on the Comments area.

[I_am_me1953]

From the above article, "The results won't officially be made public until tomorrow, but there's word that at least three of the nation's 19 largest financial institutions have passed government stress tests."

____________________

Reminds me of some of my prof's remarks after several organic chemistry tests;

Prof: "I'm upset with this class, only 6 people passed this test."

Response: "Well doc, maybe you shouldn't have made the test so hard ..........."

[James_for_Today]

With all due respect Rowdy (which I doubt you'll return to me) I think some education is lacking in your life when you so brazenly and mistakenly call Mr. Obama a Muslim and Arabic. How about disagreeing with the way he is conducting the Presidency without resorting to name calling?

[antoniof123]

Good they need to be controled they almost destroyed this country with their hands off approach. Next the credit card companies then on to finish off wall street.

Enough is enough for the robber barons.

[Rowdy108]

If the US is ignorant enough to fall for this krap, then the half of the country that voted for the piece of trash in our White House deserves communism.

The rest of us need to step back from Washington and say, no deal, sorry....you guys are now the United Socialist States of America, you can fly the schwaztica flag, sing kum bah yay for your national anthem, defend yourselves with toothpicks, athiesm like the rest of the dumb animals, and murder your babies at will.

We, real Americans, however, will continue to be the United States, live under the laws of our Constitution, belt out the national anthem to the top of our voices, wave Old Glory because it represents our freedom, keep our guns, Bibles, and support and love our babies, while you die off in your communist dreams of sucking off the government for the rest of your life.

When the ignorant prevail...because they were too lazy to educate themselves so they know better than to vote for a honking arabic/muslim communist...they reap what they sow.