Banking, finance, and taxes
Stress Test Results, Bank by Bank (AXP, BBT, BAC, COF, C, FITB, GS, JPM, KEY, MET, MS, PNC, RF, STT, STI, USB, WFC)
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Finally, the stress tests are out for the US banking and financial institutions. Of the banks, 10 of 19 banks need a combined $74 billion of equity.The good news is that a few companies were given essentially a clean bill of health, such as American Express Company (AXP), BB&T Corp. (BBT), Bank of New York Mellon Corporation (BK), Capital One Financial Corp. (COF), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), MetLife, Inc. (MET), State Street Corp. (STT), and USBancorp (USB).
We have broken these down in a single unified and summarized report that shows each bank or financial institution along with an estimated market cap to show what the capital requirements are as far as what each bank will need to raise versus what shareholders already have at stake. We summarized the list below, and be advised that the tier 1 capital is the total tier 1 capital rather than the Tier 1 Common Capital. Also be advised that the SCAP BUFFER is the term used for the capital needed to be raised, and that is inclusive of capital raised and from infusions.
American Express Company (AXP) $30.4 Billion Market Cap
NO NEW CAPITAL NEEDED…. $10.1 billion in tier-1 capital and total estimates losses in a more adverse scenario are $11.2 billion. Total Risk Weighted Assets were $104.4 billion.
Bank of America Corporation (BAC) $86.5 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $33.9 billion. B of A could have $173.2 billion in Tier-1 capital and could have $136.6 billion in total losses in a more adverse scenario. Total Risk Weighted Assets were $1.6338 trillion.
BB&T Corporation (BBT) $14.2 Billion Market Cap
NO NEW CAPITAL NEEDED. Tier-1 capital was listed as $13.4 billion and its total estimate losses in a more adverse scenario are $8.7 billion. Total Risk Weighted Assets were $109.8 billion.
Bank of New York Mellon Corporation (BK) $34 Billion Market Cap
NO NEW CAPITAL NEEDED. Its tier-1 capital was listed as $15.4 billion and its total estimate losses in a more adverse scenario are $5.4 billion. Total Risk Weighted Assets were $115.8 billion.
Capital One Financial Corp. (COF) $10.3 Billion Market Cap
NO NEW CAPITAL NEEDED… Tier 1 Capital was $16.8 billion and the total estimate losses in a more adverse scenario are $13.4 billion. Total Risk Weighted Assets were $131.8 billion.
Citigroup, Inc. (C) $21.3 Billion Market Cap
Its SCAP BUFFER, or capital needed to be raised, is $5.5 billion. Tier 1 capital was $118.8 billion and total estimate losses in a more adverse scenario are $104.7 billion. Total Risk Weighted Assets were $996.2 billion.
Fifth Third Bancorp (FITB) $3.08 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $1.1 billion. That is smaller than many thought. Tier-1 capital was $11.9 billion and its total estimate losses in a more adverse scenario are $9.1 billion. Total Risk Weighted Assets were $112.6 billion.
GMAC LLC (private)
SCAP BUFFER, or amount needed to be raised, is $11.5 billion. Its Tier 1 capital was $17.4 billion and total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $172.7 billion.
Goldman Sachs Group Inc. (GS) $63.6 Billion Market Cap
NO CAPITAL NEEDED…. Tier-1 capital was $55.9 billion and total estimate losses in a more adverse scenario are $17.8 billion. Total Risk Weighted Assets were $444.8 billion.
JPMorgan Chase & Co. (JPM) $132.4 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 capital $136.2 billion and total estimate losses in a more adverse scenario are $97.4 billion. Total Risk Weighted Assets were $1.3375 billion.
KeyCorp (KEY) $3.8 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was $11.6 billion and total estimate losses in a more adverse scenario are $6.7 billion. Total Risk Weighted Assets were $106.7 billion.
MetLife Inc. (MET) $25.9 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 Capital was $30.1 billion and the total estimate losses in a more adverse scenario are $9.6 billion. Total Risk Weighted Assets were $326.4 billion.
Morgan Stanley (MS) $29.1 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was listed as $47.2 billion and the total estimate losses in a more adverse scenario are $19.7 billion. Total Risk Weighted Assets were $310.6 billion. After the close, Morgan Stanley said it will offer $2 billion in common stock and will sell $3 billion worth of non-FDIC guaranteed debt. That non-FDIC is key, because this allows the company to pay back the TARP if those rules have not changed.
PNC Financial Services Group (PNC) $21.1 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $0.6 billion. Tier 1 capital was listed as $24.1 billion and total estimate losses in a more adverse scenario are $18.8 billion. Total Risk Weighted Assets were $250.9 billion.
Regions Financial Corporation (RF) $3.6 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $2.5 billion. Tier 1 capital was $12.1 billion and its total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $116.3 billion.
State Street Corp. (STT) $16.43 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 Capital was $14.1 billion and its total estimate losses in a more adverse scenario are $8.2 billion. Total Risk Weighted Assets were $69.6 billion.
SunTrust Banks, Inc. (STI) $6.61 Billion Market Cap
SCAP BUFFER, or Capital needed to be raised $2.2 billion; Tier 1 capital was $17.6 billion and its total estimate losses in a more adverse scenario are $11.8 billion. Total Risk Weighted Assets were $162 billion.
US Bancorp (USB) $34.4 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 capital was $24.4 billion and total estimate losses in a more adverse scenario are $15.7 billion. Total Risk Weighted Assets were $230.6 billion.
Wells Fargo & Company (WFC) $105.5 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $13.7 billion. Tier 1 capital was $86.4 billion and its total estimate losses in a more adverse scenario are $86.1 billion. After the close, Wells Fargo filed to raise $6 billion via stock sale. Total Risk Weighted Assets were $1.0823 trillion.
Please be advised that the Tier-1 capital listed here in this summary is the total Tier-1 capital rather than Tier 1 Common Capital.
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JON C. OGG
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