Ten US banks fail 'stress tests'

Ten US banks fail 'stress tests'
十个美国银行应力测试失败
Ten of America's largest 19 banks need a combined $74.6bn (£50bn) of extra funds to boost（推进，提高） their cash reserves.（现金储备）

That is the main finding of the so-called "stress tests" to see if the banks have sufficient（足够的，充分的） capital to cope should the recession （衰退，经济不景气）worsen.

Bank of America is the most at risk（处境危险）, needing an additional $33.9bn.

"Our hope with today's actions is that banks are going to be able to get back to the business of banking 1," said US Treasury 2 Secretary Timothy Geithner.

Other banks that need more money include Wells Fargo, which is said to require $13.7bn, and GMAC, the financial arm of General Motors, which needs $11.5bn.

Citigroup requires an additional $5.5bn of funds, and Morgan Stanley has been told to find $1.8bn.

Some of the banks have already indicated（指明，表明） how they intend to raise the money they need by private means such as asset sales, rather than having to secure any additional government loans.（公债）

'No surprises'

The 19 banks that were tested by Treasury Department and Federal Reserve officials account for two-thirds of the total assets of the US banking system, and more than half of the total amount of credit in the US economy.

The banks that require extra capital have been given until 8 June to finalise（使结束，使完结） their plans to do so, and get them approved by regulators.

Mr Geithner said earlier on Thursday that no US bank being screened（遮蔽的） by regulators was at risk of insolvency,（破产） comments echoed by Federal Reserve Chairman Ben Bernanke.

The treasury secretary said he believed that while the majority of the banks would be able to raise any additional money they need from private sources, if they were unable to do so the government may have to provide them with more taxpayer（纳税人） money.

Analysts 3 broadly welcomed the results of the stress tests.

"It seems to be that the leaks（漏洞） were very accurate, so there doesn't seem to be any major surprises," said Eric Kuby of North Star Investment Management.

"The fears of nationalisation（国有化） or of failure have more or less disappeared."

Asset sale

The other five banks that have been told they require additional capital are Regions Financial ($2.5bn), SunTrust Banks ($2.2bn), KeyCorp ($1.8bn), Fifth Third Bancorp ($1.1bn), and PNC Financial Services ($600m).

Those that do not require extra funds are Goldman Sachs, JPMorgan Chase, Bank of New York Mellon, MetLife, American Express, State Street, BB&T, US Bancorp and Capital One Financial.

Some of the banks that need extra funds have been quick to announce how they intend to do so.

Bank of America said it would raise the $33.9bn it needs through the sale of assets and other measures, while Citigroup, Morgan Stanley and Wells Fargo are to issue or exchange shares.

Citigroup chief executive Vikram Pandit said his bank's actions would "give it the financial strength to weather an adverse（不利的） stress scenario 4".

Criticism

Some commentators（解说员，广播员） have questioned whether the tests have been strict enough.

Professor Nouriel Roubini and Professor Matthew Richardson of New York University said that the doomsday（世界末日） scenario that the banks' books have been subjected to（受到，经受） is actually no worse than the current economic situation.

And as such, they said "the stress test results will not be credibly（可靠的，可信的） interpreted as a sign of of bank health".

Others say that the tests do not take account of the banks' varying business models.(本文由在线英语听力室整理编辑)