9 Jun 2009

Fed happy with stressed bank plans for more capital

12:26 pm on 9 June 2009

The US Federal Reserve says it's happy with the detailed plans submitted by 10 banks in the United States about how they will raise extra funding to shore up their financial position in case of an economic shock.

Nineteen banks were stress tested last month. Ten were found to need an additional $US75 billion to cope if the recession worsened.

The Fed says it will ensure the programmes are implemented effectively and the banks have until early November to do so.

Reuters news agency says the banks have collectively raised $US65 billion by selling shares.

The US government is also expected to announce which US banks will be able to repay bailout funds later this week.