Since my company sells mortgage loans to a number of the instutions who recently volunteered for the U.S. Treasury Stress Tests, I have been anxiously awaiting the results. Although I don’t think the stress tests are a perfect way to judge these banks, its good to know how strong a bank is when we go to sell them millions of dollars of closed mortgage loans.
Since we sell mortgage loans to 8 of the banks of the list, the results could have had a signifigant impact on our business. I downloaded the entire 38 page report (which you can see here http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090507a1.pdf) so I can read the details behind the result.
There are currenly thousands of articles being posted on the web and will be all over newspapers tomorrow. To me, there is no better source than the Stress Test Results released directly from the Fed. You can read through the actual data without any media spin.
The big news is currently swirling about the results below, but I think the detail behind it hold much more important information. Seeing the way the Fed is weighting different kinds of bank assets can give us some insight into where banks will be putting capital in the future. This could have an unintended side effect of pushing banks away from certain types of lending based on the way they play into the stress tests.
| Institution | Amount Needed |
| American Express | None Needed |
| Bank Of America | 33.9 Billion |
| BB&T | None Needed |
| Bank of New York Mellon | None Needed |
| Capital One Financial Corp | None Needed |
| CitiGroup | 5.5 Billion |
| Fifth Third | 1.1 Billion |
| GMAC | 11.5 Billion |
| Goldman Sachs Group | None Needed |
| Chase | None Needed |
| KeyCorp | 1.8 Billion |
| MetLife Bank | None Needed |
| Morgan Stanley | 1.8 Billion |
| PNC Financial | .6 Billion |
| Regions Financial | 2.5 |
| State Street | None Needed |
| Suntrust | 2.2 Billion |
| U.S. Bank | None Needed |
| Wells Fargo | 13.7 Billion |