Thursday, May 7, 2009

United States, Geytner: Neither one of the largest banks in no danger of bankruptcy

No American bank, as shown by the results of stress tests are not at risk of bankruptcy, said Finance Minister Timothy Geytner.
The results of stress tests on 19 U.S. banks will be issued later in the week. Tests are expected to show that, in order to maintain the finances of some banks, we need tens of billions of dollars. According to the forecasts of the largest amount required Citigroup and Bank of America.
Reports said that Citigroup, might need more than 50 billion dollars, while Bank of America may need to be found in the additional 34 billion.
Wells Fargo and GMAC, the financial unit of General Motors, may also be required to find the extra cash, projected New York Times, 19 banks in total, will need less than $ 100 billion total - less than some had feared.
Stock markets around the world hoped that the results of stress tests can be a turning point in financial crisis.
American banks are being tested that had the U.S. government and the Fed has the information whether the banks enough cash reserves to cope with the deterioration. The results would improve the transparency and confidence in the banking system, "he said. Geytner said that he believed that most banks will be able to find money from private sources, but if they were unable to do so, the Government may have to give them more of taxpayers' money.

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