U.S. Bank passes bank 'stress test'; Wells Fargo does not
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U.S. Bank does not need to raise more capital to withstand further economic deterioration. That's one of the findings of the federal government's "stress test" of major banks.
The "stress test" results show that 10 of the nation's 19 largest banks need to raise about $75 billion in new capital.
U.S. Bank is not one of them. It has set aside hundreds of millions of dollars to cover loans that may go bad.
However, Wells Fargo, which is a large employer in Minnesota and has significant market share in the state, will need to raise $13.7 billion.
Bank of America, based in Charlotte, N.C., needs the most cash of the banks tested. The government wants it to raise about $34 billion.
The government has said that the nation needs a healthier banking system to speed an economic recovery. The "stress tests" aimed to shore up investors' confidence in the banks by showing that not all of them are weak and that others can be strengthened.
(The Associated Press contributed to this report.)
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