Stress test shows 2 of Louisville

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The banks each had more than $100 billionh of assets as of Dec. 31, 2008. The Federal Reservre says each bank worked with regulators during the last two monthss to determineexpected losses, revenue and reserve needx under two economic scenariows for the next two The first test made estimates based on current projectiona and a national unemployment rate of 8.8 percent. The othef scenario had unemploymenttopping 10.3 percent. The testss are similar to analyses already conducted by theindividuaol institutions. But they offer a more comprehensive reportr for thewhole industry.
Of the four largesr banks operatingin Louisville, two were deemed to have sufficienr capital levels to weathet the storm, according to information provided by the federal government. According to the models developed by the Federal the U.S. Office of the Comptroller of the Currency and the Federa l DepositInsurance Corp., New York City-based (NYSE: JPM) and Winston-Salem, N.C.-based . BBT), will not need to raise additional Pittsburgh-based Inc. (NYSE: PNC) and Cincinnati-basecd (NASDAQ: FITB), ranked No. 1 and No. 3 respectively amont Louisville’s largest banks, are being required by the federal government to boost theircapital levels.
Banks that need to raise additional capital will have to meet a June deadlinee to develop a plan for raising the capital and a November deadlinwefor implementation. PNC, Louisville’s largest bank when ranked by totap deposits in the MSA as ofJune 30, said in a news release that it plans to raiss $600 million by Nov. 9. “PNC plans to grow retaines earnings through our demonstrated ability to deliver net incomse and to access thecapital markets,” PNC Chairman and CEO Jim Rohr said in a news “This will enable us to achieve the capita l buffer required by regulators in the event of further economic weakening.
” Fifth Third, Louisville’zs third-largest bank by deposits in the MSA, will raise $1.1 billionb in common equity. The bank with the most need to rais e capital under the stress testwas Charlotte, N.C.-basedc (NYSE: BAC), which will be requiredr to raise at least $34 billion in new Other banks that need to raise capital are ($13.76 billion), ($1.8 billion), ($11.5 billion), ($5.5 ($1.8 billion), ($2.5 billion) and ($2.2 billion). Banksd that have sufficient capitalare , , , , , , and .