KBW stress test prediction for banks

swimminginstock

KBW had a very extensive research report on the stress tests and even conducted their own individual stress tests on the banks, coming to the conclusion that the industry needs another $1 trillion in capital. This is close to the $875 billion the IMF says is needed.

In its study, the firm said Bank of America (NYSE: BAC) is one of the banks most at risk and they think it will be the most likely to convert some of the government's preferred shares into common. They think the government could end up owning 30% of BofA.

Other banks that may eventually need more capital, according to the firm, include: Fifth Third (Nasdaq: FITB), KeyCorp (NYSE: KEY), PNC Bank (NYSE: PNC), Regions Financial Corp. (NYSE: RF), SunTrust Banks, Inc. (NYSE: STI), and Wells Fargo (NYSE: WFC).

Banks that look in a good position to pass the test without any additional capital include BB&T (NYSE: BBT), Bank of New York Mellon (NYSE: BK), Capital One (NYSE: COF), Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), Morgan Stanley (NYSE: MS), State Street Corp. (NYSE: STT), US Bancorp (NYSE: USB).

The firm said MetLife (NYSE: MET) is too hard to call since it is a life insurer and it is unclear how the Treasury stress test will be applied

huaxue09

how about citigroup and wells fargo? citigroup is better than BAC?

fisheatme

Wells fargo is in the bad ones
I think they are not testing Citi because it's already a gov owned bank

thanks a lot, lz