Banks Can Offset Capital Raising Requirements With Q2 and Q3 Profits
US banks have been given government assurances they will be allowed to raise less than the $74.6bn in equity mandated by stress tests if earnings over the next six months outstrip regulators’
Merger Time For Regional Banks?
Weaker regional banks (SunTrust, Regions Financial, KeyCorp and Fifth Third) could become takeover targets of banks identified by the stress tests as being stronger (U.S. Bancorp and BB&T and PNC Financial).
Egan-Jones Says Morgan Stanley May Need $40B After Stress Tests Say $1.8B
In a note to its clients Friday afternoon, the credit rating agency said that Morgan Stanley needs far more than what the government's stress tests showed. If true, it means MS needs to raise 130% of its current market capitalization.
