Stress test: Banks need to raise $74.6 billion

Author:
Updated:
Original:

The federal government ordered 10 of the nation's biggest banks to raise a combined $74.6 billion in capital as a cushion, after stress-test results showed potential losses of up to $599 billion through the end of next year if the economy performs worse than expected.

The Federal Reserve's worst-case estimates of total losses and capital shortfalls were smaller than some had feared, according to a report in the Wall Street Journal. The stress tests measured potential losses on mortgages, commercial loans, securities and other assets held by the tested banks.

Treasury Secretary Timothy Geithner said he is "reasonably confident" banks will be able to plug the capital holes through private infusions without Washington further involving itself in the banking system, according to the report.

Banks also said they will consider selling businesses or issuing new stock to meet the toughened capital standards.

Click here for the complete report.

Click here for a WSJ report on how the stress tests have affected the market.

Related

Quick Hits: October 30, 2020

HMY Yacht Sales opens new office; FLIR, Patrick Industries, Marine Products Corp., and Twin Disc all report quarterly financials.

BoatUS, Stakeholders Ask FCC to Reconsider Approval of Ligado L-Band Wireless Plan

A group says the land-based, industrial 5G L-Band wireless network will make the nation’s GPS system less reliable.

VIDEO: Get On Board Campaign Sees Results

The boating and fishing industry worked together to leverage the health benefits of both activities during the pandemic.

Yamaha Tech School Partnership Program Hits Century Mark

The outboard manufacturer’s program creates a student-to-technician pipeline for Yamaha dealers and provides technical schools with instructor-led courses and tools.

A Wealth of Debuts at FLIBS

Over 20 new models are premiering at the downsized show; here are some of the standouts under 60 feet.

One of a Kind

This year’s FLIBS is truly unlike any other: notably less crowds, but with a healthy dose of serious buyers.