BUSINESS BRIEFING / BANKING
TIMES WIRE REPORTS
The Federal Reserve intends to release results of “stress tests” for 19 large banks on Thursday, three days later than previously scheduled.
The tests are designed to determine which banks might need government support to withstand a more severe recession. The Fed on Thursday will detail the health of individual banks and reveal the extra capital the banks will need based on the tests, a government official said.
It’s expected that some banks will have to raise cash. They will have up to six months to obtain money from private investors, Federal Reserve Chairman Ben S. Bernanke has said. If they can’t, the government will provide aid.
Negotiations between banks and regulators about the test results pushed back the release date.
