Wednesday, April 15, 2009

The 19 Stress Tested Banks

The Treasury is about to release some news on stressed tested banks. To date, Treasury has not publicly disclosed the names of the 19 banks that have under gone stress tests. Here's a pretty good guess via ProPublica as to the likely suspects

1. JPMorgan Chase
2. Citigroup
3. Bank of America
4. Wells Fargo
5. Goldman Sachs
6. Morgan Stanley
7. MetLife
8. PNC Financial Services
9. U.S. Bancorp
10. Bank of New York Mellon
11. GMAC
12. SunTrust
13. State Street
14. Capital One Financial Corp.
15. BB&T
16. Regions Financial Corp.
17. American Express
18. Fifth Third Bancorp
19. KeyCorp

Some, like GMAC, American Express and Goldman Sachs, weren’t banks until a few months ago, when they converted to bank holding companies in order to be eligible for government bailout money. GMAC confirmed to ProPublica they are on the list. I know Goldman underwent a stress test because Goldman President Gary Cohn told me so at FFI.

My guess is the Treasury will require forced selling of PE stakes across the board and that someone, not American Express, in the bottom half will be taken out.

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