Banks Get Stress Test Grades

Pandit out at Citi?
By Kevin Spak,  Newser Staff
Posted Apr 24, 2009 8:40 AM CDT
Banks Get Stress Test Grades
Executives from the TARP banks testify on Capitol Hill, Feb. 11, 2009, before the House Financial Services Committee.   (AP Photo/Manuel Balce Ceneta)

The nation's biggest banks will start to learn how they did on the dreaded stress test today, reports the New York Times. Though the public won’t learn the results until May 4, analysts are predicting that many of the 19 banks will have to raise large amounts of new capital to survive a prolonged recession. Bank of America and Citigroup are thought to be in especially dire straights.

Indeed, sources tell the New York Post that regulators are considering ousting Citi chief Vikram Pandit, as a sign that Washington isn’t treating Wall Street any better than it did Detroit. Some banks on the other hand, like Goldman Sachs and JP Morgan, are expected to pass with flying colors. Such speculation will likely increase today when the Fed releases its general methodology for the tests. (More banking industry stories.)

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