Which Banks Are Stressed?

Here are the results of the recent stress tests carried out by the Federal Reserve and how they impacted banks that participate in the FFEL and/or private loan programs.  The figures below indicate the amount of capital these banks need to raise in order to survive the "deepening recession" scenarios modeled by the Federal Reserve:

Bank   Capital Required Bank of America $33.9 billion Wells Fargo $13.7 billion Citigroup $5.5 billion Regions Financial $2.5 billion SunTrust $2.2 billion KeyCorp.  $1.8 billion Fifth Third Bank $1.1 billion PNC $0.6 billion

U.S. Bancorp and JP Morgan Chase both were given a "clean bill of health" by the Fed and were not required to raise any additional capital.  See this WSJ article for additional details about these stress tests.

So, where do we go from here?  One investment banker wondered what impact the tests would have on future lending by these banks:

“Everybody should breathe a sigh of relief,” said Peter J. Solomon, who runs a boutique investment bank and early in his career worked at Lehman Brothers. “Now the question is, So what? Will they lend?”