Thursday, April 16, 2009

Bank Test Results May Strain Limits Of Bailout Funding

WASHINGTON - MARCH 24:  Federal Reserve Chairm...

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By David Cho

Washington Post Staff Writer
Thursday, April 16, 2009

As the Obama administration works to complete its stress tests for gauging the health of major banks, it could confront another problem: how to pay for shoring up any weaknesses the tests reveal.

No one yet knows the extent of the banks' needs. But a senior administration official said yesterday this will be clear once tests on the nation's 19 major banks are done and the results are released early next month.

The administration would be hard-pressed to ask Congress for more rescue funds to plug the holes. Anger on Capitol Hill is high, especially after the furor over bonuses paid to employees at American International Group. The troubled insurer had earlier received more than $170 billion in bailout funds.

Bank Test Results May Strain Limits Of Bailout Funding -

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