Financial Times FT.com

Stress tests show $75bn buffer needed

By Krishna Guha in Washington and Francesco Guerrera and Alan Rappeport in New York

Published: May 7 2009 22:01 | Last updated: May 8 2009 00:59

US regulators on Thursday ordered 10 of the nation’s largest banks to add a total of $74.6bn in equity following the completion of stress tests, triggering a frenzy of activity as banks lined up to announce capital-raising plans.

“These tests will help ensure that banks have a sufficient capital cushion to continue lending in a more adverse economic scenario,” Tim Geithner, US Treasury secretary, said.

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