Federal Reserve Monday (June 1) that the 19 has just been completed for the pressure of the big banks to test the new requirements for these banks from the United States prior to the return of non-performing assets of the Ministry of Finance to obtain relief program (TARP) loan, you must first prove that their ability to issue additional common stock through a public fund-raising, and adequate capital adequacy ratio, and a number of conditions be approved.
The impact of this new requirement, two passed before the pressure test, was that there was no financing needs of financial institutions, announced that it would issue new shares immediately. The two institutions, including JPMorgan Chase Bank (hereinafter referred to JP Morgan Chase) and the United States credit card giant American Express Company (American Express).
This shows that the U.S. government for the United States for an early resumption of banking institutions can "free" will be the implementation of stringent requirements.
JP Morgan Chase announced that June 1, will be issued to a total value of five billion U.S. dollars of new shares, the United States is expected to be time to start June 2 pricing. JP Morgan before the end of June in the hope that the U.S. Treasury to pay off 25 billion U.S. dollars to repay the TARP, to restore not subject to government intervention in his capacity as an independent bank.
American Express also announced on the same day, will issue a total of 500 million U.S. dollars of new shares, 3.4 billion U.S. dollars for the return of the borrower of the TARP. Since then, Morgan Stanley on June 2 also announced the public offering of ordinary shares of 2.2 billion U.S. dollars.
