Some stress-tested banks are resisting federal officials' assertions that they need to raise more capital, according to Bloomberg. The dust-up apparently will force the government to delay the scheduled May 4 findings of the tests.
Banks may regret going to the mat on this. The market now widely assumes that at least six of the 19 tested institutions have been told they need to raise more capital.
The tests also may lose all credibility, and the public's faith in the strength of the banking sector may further erode if the publicly released results -- whenever they come out -- even hint that Treasury Secretary Timothy Geithner and Federal Reserve officials backed off from original demands. - Bill McConnell in Washington
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