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NOT A SUBSCRIBER?Stress test stressesPosted on February 27, 2009 9:30 AM
The most pressing question now facing economists and policymakers is whether the Treasury Department is right to promise that the country's biggest and most troubled banks will get the funds they need to stay afloat. Although the government appears committed to that course, there is heated debate among economic experts about whether the charted direction is correct.
Treasury Secretary Timothy Geithner on Wednesday laid out a new capital program for the financial industry that requires the country's 19 largest institutions to undergo a stress test to determine how much capital they need to weather significant continued deterioration in the economy. After an institution's capital needs are determined, it will have a six-month window to obtain the necessary funds from private investors or obtain funds from the Treasury instead. This is a free preview of the content available in The Deal Pipeline. Subscribers enjoy access to the full story, as well as second-to-none research tools. To request a demo, or, if you are an existing user to The Deal Pipeline, log in to your account, please scroll down and click the button. Dig deeper, with Pipeline.
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