- The Washington Times - Thursday, May 7, 2009

DEVELOPING:

WASHINGTON — The government’s long-awaited “stress-test” results find 10 of the nation’s 19 largest banks need a total of about $75 billion in new capital to withstand losses if the recession worsened.

The Federal Reserve’s findings show the financial system, like the overall economy, is healing but not yet healed.

Some of the largest banks are stable, the tests found. But others need billions more in capital — a signal by regulators that the industry is vulnerable but viable. Government officials have said a stronger banking system is needed for an economic rebound.

Officials hope the tests will restore investors’ confidence that not all banks are weak, and that even those that are can be strengthened. They have said none of the banks will be allowed to fail.

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