Fed says bank capital plans to be sufficient

By AFP

July 15, 2010 Updated Jun 8, 2009 at 6:01 PM CDT

The Federal Reserve said Monday the 10 major US banks ordered to raise new capital following "stress tests" have developed sufficient programs to shore up their finances.

But the central bank did not provide a green light to any individual banks to repay the government for capital injections, as some institutions had sought.

"The 10 banking organizations required ...to bolster their capital buffers have all submitted capital plans that, if implemented, would provide sufficient capital to meet the required buffer under the assessment's more-adverse scenario," the Fed said in a statement.

"As supervisors, we will be working with the institutions to ensure their plans are implemented quickly and effectively."

Some reports had said a few of the banks of the 19 subjected to stress tests could have gotten quick approval to repay capital. Some banks are hoping to repay the government by the end of June.

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