Bank stress tests: Everybody gets an A!

By Paul R. La Monica, CNNMoney
2009-5-5 12:58:14

NEW YORK (CNNMoney.com) -- We'll have to wait until Thursday for the official results of the eagerly awaited stress tests on 19 of the nation's largest financial firms.

But amazingly, the more that gets leaked out, the more excited investors get.

Despite reports that anywhere between 10 and 14 of the banks could be forced by the government to raise capital, shares of all the stress-test participants surged Monday. (This does not include General Motors, a minority owner in auto lender GMAC.)

In fact, they didn't just rally -- they exploded. Morgan Stanley (MS, Fortune 500) gained 4.7% and it was the worst performer. Shares of a dozen stress-tested banks soared more than 10%.

Three regional banks widely believed to need more funding -- Birmingham, Ala.-based Regions Financial (RF, Fortune 500), Cincinnati's Fifth Third Bank (FITB, Fortune 500) and SunTrust Financial (STI, Fortune 500) of Atlanta -- each gained more than 25%

And Wells Fargo (WFC, Fortune 500), considered one of the strongest, also shot up nearly 25% -- despite reports that it too may need to raise more capital.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Bank stress tests: Everybody gets an A! By Paul R. La Monica, CNNMoney 2009-5-5 12:58:14 NEW YORK (CNNMoney.com) -- We'll have to wait until Thursday for the official results of the eagerly awaited stress tests on 19 of the nation's largest financial firms. But amazingly, the more that gets leaked out, the more excited investors get. Despite reports that anywhere between 10 and 14 of the banks could be forced by the government to raise capital, shares of all the stress-test participants surged Monday. (This does not include General Motors, a minority owner in auto lender GMAC.) In fact, they didn't just rally -- they exploded. Morgan Stanley (MS, Fortune 500) gained 4.7% and it was the worst performer. Shares of a dozen stress-tested banks soared more than 10%. Three regional banks widely believed to need more funding -- Birmingham, Ala.-based Regions Financial (RF, Fortune 500), Cincinnati's Fifth Third Bank (FITB, Fortune 500) and SunTrust Financial (STI, Fortune 500) of Atlanta -- each gained more than 25% And Wells Fargo (WFC, Fortune 500), considered one of the strongest, also shot up nearly 25% -- despite reports that it too may need to raise more capital.