Bank losses near $600 billion in worst case scenario

Losses at 19 of the nation's largest banks could be as high as $599 billion through the end of next year if the economy performs worse then expected. That's the gist of the stress tests just completed by the Fed. To strengthen the banking system, the Fed ordered 10 of the banks to raise a total of $74.6 billion, the other nine did not need additional capital.

Of the ten banks that need to raise money, Bank of America (BAC) faces the greatest challenge. It must raise an additional $33.9 billion. Wells Fargo (WFC) must raise $13.7 and it announced a $6 billion common-stock offering. Morgan Stanley (MS), which needs to raise $1.8 billion, said it will sell $2 billion of stock and $3 billion of debt that isn't guaranteed by the government.