Banks in Midwest and South may have underwhelmed in stress tests


News has begun to leak out that the government is leaning on some of the 19 banks that went through the "stress test" designed to predict what will happen to them if the economy gets worse. Banks that fail will be asked, not politely, and perhaps pressured, to raise private money. If they cannot, the government will make larger investments and get a bigger ownership position.

According to The Wall Street Journal, experts think that they may know the regions were some of the banks are based. The paper writes, "Analysts believe they likely include regional banks with large exposures to commercial real estate in the Midwest and Southeast."