The Federal Reserve in the US has released results of a comprehensive, forward-looking assessment of the financial conditions of the 19 largest US bank holding companies (BHCs).
The Supervisory Capital Assessment Program (SCAP) exercise was conducted so that supervisors could determine the capital buffers sufficient for the 19 BHCs to withstand losses and sustain lending.
The test results suggested that the banking industry was in better shape than many had feared. Of the nation's 19 largest banks regulators gave nine a clean bill of health.
The remaining 10 were ordered to raise a combined $75 billion in equity capital as a buffer against potential losses should the economy deteriorate.
GMAC, (the finance arm of General Motors) Bank of America, Wells Fargo and Citigroup were highlighted as the most troubled financial institutions.