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Updated: May 13, 2009

Bank 'stress test' results hint at economic recovery

Jim Puzzanghera and E. Scott Reckard , LA Times
May 8, 2009

Excerpt:

The nation's biggest banks are regaining their health, but some need to replenish their coffers to withstand any new difficulties, the government said in an upbeat report Thursday.

The Federal Reserve's highly anticipated "stress tests" found that 10 of the 19 largest banks needed to bolster their capital by a combined $75 billion. Most of that must be raised by two banks with a large California presence -- Bank of America Corp. and Wells Fargo & Co. -- highlighting the role of the state's housing market meltdown in the recession.

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