Financial Times FT.com

Bernanke eases fears over stress tests for banks

By Krishna Guha in Washington

Published: February 25 2009 02:00 | Last updated: February 25 2009 02:00

Stress tests of big US banks that start this week are unlikely to lead to any of them being seized by regulators and nationalised outright, Federal Reserve chairman Ben Bernanke toldCongress yesterday.

His comments provided the clearest signal yet that US authorities hope to support major banks as going concerns in the private markets, taking equity stakes as necessary to shore up their capital in what would amount to partial nationalisations.

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