Banks reach D-day: Test scores released

WASHINGTON, May 7 (UPI) -- The Treasury said Thursday the largest U.S. banks need to raise $75 billion as a cushion against further economic stress, far less than analysts had feared.

Ten of the 19 large banks tested by the Treasury against deteriorating economic conditions would need to shore up capital reserves, but the Treasury said there were several options available to banks.

Analysts feared banks may need at least $100 billion, with some estimates much higher than that.

Citigroup Inc. was tagged with a $5.5 billion shortfall, the Treasury said. Bank of America will be required to raise $34 billion. GMAC would need to raise $11.5 billion, the Treasury said.

US Bancorp, State Street Corp., MetLife, JPMorgan Chase & Co., Capital One Financial, American Express Co., The Bank of New York Mellon Corp. and BB&T Corp. were each told there was "no need" for additional capital.

Treasury Secretary Timothy Geithner said the government had taken "extraordinary actions to ensure the stability of our banking system."

The Treasury would allow some banks to pay back Troubled Asset Relief Program funds borrowed when the financial crisis erupted last fall.

Federal Reserve Chairman Ben Bernanke said in a statement the tests would "provide considerable comfort to investors and the public."