10 Banks Submit Capital Replenishment Plans: Fed

All 10 of the largest U.S. banks under orders to raise additional capital as a buffer against further economic shocks have submitted their plans to do so, the Federal Reserve said on Monday.

"As supervisors, we will be working with the institutions to ensure their plans are implemented quickly and effectively," the Fed said in a short statement.

The Obama administration ordered the 19 largest U.S. banks to show how they would fare in a hypothetical economic turn for the worse. As a result of the exercise, the government demanded in early May that 10 banks boost their capital buffers by a total of $74.6 billion.

The "stress test" process is a centerpiece of administration efforts to restore confidence in the banking system, which has been severely shaken by the worst financial crisis since the Great Depression.

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All of the banks would meet their capital requirements even after projected losses under the government's worst-case scenario if they successfully follow their plans, the Fed said. They have until Nov. 9 to follow through.

The Fed provided no details about the plans.

Bank supervisors will work with all regulated firms to review capital planning, risk management, and corporate governance, the Fed said.

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