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| US bank deadline on stress tests | US bank deadline on stress tests |
| (40 minutes later) | |
| US stocks have fallen as investors await an update on the health of the US banking system. | US stocks have fallen as investors await an update on the health of the US banking system. |
| The banks that were ordered to raise extra capital after "stress tests" in May must submit their plans by Monday. | The banks that were ordered to raise extra capital after "stress tests" in May must submit their plans by Monday. |
| The government is also expected to announce which US banks will be able to repay bail-out funds. | The government is also expected to announce which US banks will be able to repay bail-out funds. |
| However, investors were worried that the repayment of government aid would hurt lending and thus undermine the chances of an economic recovery. | However, investors were worried that the repayment of government aid would hurt lending and thus undermine the chances of an economic recovery. |
| The Dow Jones industrial average was down 1.4% or 123.26 points, at 8,639.87 points. | The Dow Jones industrial average was down 1.4% or 123.26 points, at 8,639.87 points. |
| THE 10 THAT NEED MORE CAPITAL Bank of America - $33.9bnWells Fargo - $13.7bnGMAC - $11.5bnCitigroup - $5.5bnMorgan Stanley - $1.8bnRegions Financial - $2.5bnSunTrust Banks - $2.2bnKeyCorp - $1.8bnFifth Third Bancorp - $1.1bnPNC Financial Services - $600m Q&A: Bank stress tests | THE 10 THAT NEED MORE CAPITAL Bank of America - $33.9bnWells Fargo - $13.7bnGMAC - $11.5bnCitigroup - $5.5bnMorgan Stanley - $1.8bnRegions Financial - $2.5bnSunTrust Banks - $2.2bnKeyCorp - $1.8bnFifth Third Bancorp - $1.1bnPNC Financial Services - $600m Q&A: Bank stress tests |
| Most European markets were also lower, with the FTSE 100 index of leading UK shares down 0.99%, or 44.13 points, at 4,394.43 points. | |
| Deadline looms | Deadline looms |
| On 7 May, regulators released results of "stress tests" on the 19 largest financial institutions to see what extra capital they would need should the economy take a turn for the worse. | |
| Ten of those 19 banks were ordered to raise a combined $74.6bn (£50bn) to boost their cash reserves and to submit a plan on how they planned to do this by 8 June. | |
| Bank of America was deemed most at risk, needing an additional $33.9bn. | Bank of America was deemed most at risk, needing an additional $33.9bn. |
| Reports say that the banks have collectively raised $65bn through share sales. | Reports say that the banks have collectively raised $65bn through share sales. |
| Other banks are keen to repay bail-out money they received from the government but there are fears that if banks are allowed to repay too quickly, it could jeopardise the chances of an economic recovery. | Other banks are keen to repay bail-out money they received from the government but there are fears that if banks are allowed to repay too quickly, it could jeopardise the chances of an economic recovery. |
| The government has allowed about 20 smaller banks to repay money and reports said that the Federal Reserve could now allow Goldman Sachs, JP Morgan and some other big banks to do the same. | The government has allowed about 20 smaller banks to repay money and reports said that the Federal Reserve could now allow Goldman Sachs, JP Morgan and some other big banks to do the same. |