As credit unions debate whether or not to accept government bailout money, the ownership of big banks will be determined by stress testing, beginning tomorrow.
According to a joint statement yesterday released by the U.S. Department of the Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Reserve Board, the group will begin evaluating "the capital needs of major U.S. banking institutions."
If stress tests indicate a capital buffer is needed, institutions will first turn to private sources of capital. If that fails, a temporary buffer will be made available from the government.
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