Source have said that about half of the nineteen largest US banks will be told by regulators to raise more capital after being “stress tested” by the government.
Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke will release details on Thursday of what the government tests found. Citigroup, Bank of America, Wells Fargo and JPMorgan Chase are reported to be among those who will have to boost their reserves. They could do that by receiving more government bailout money, by selling assets or issuing more shares. Meanwhile, the European bank worst hit by the credit crisis, Switzerland’s UBS, has confirmed a first-quarter net loss of 1.25 billion euros but said its capital position is strong compared with its rivals.