27 Apr 2009

Banks briefed on stress test results

12:27 pm on 27 April 2009

The US government has privately briefed 19 of the biggest banks in the United States on how they performed in its so-called stress tests, though results will not be made public until next month.

But the government has revealed what the tests involve.

Examiners will see how the banks would cope if the economy contracted 3.3% this year, and unemployment rose to more than 10% next year.

Banks without a big enough capital reserve may be given more government aid if they cannot raise the cash themselves.