WASHINGTON (CN) – American banks need to raise about $75 billion in capital by November, the Treasury Department announced Thursday. The government’s stress tests determined that 10 of the 19 largest U.S. banks will have to raise the money to buffer losses if the recession gets worse.
Bank of America will have to raise the most in capital, about $34 billion. This is about 20 percent of the bank’s $173 billion in core capital. GMAC will have to raise the greatest proportion of worth, 66 percent of its $17 billion in core capital.
The government stands ready to provide whatever additional capital necessary, Federal Reserve Chairman Ben Bernanke said. Together, the 19 banks hold more than half the loans in the U.S. banking system.