STILL STRESS TESTING the system, research done for the FT has revealed that smaller and mid sized US BANKS may require an additional Usd 24bln in capital, when applying the standards set by the govt in its recent stress tests of the US's 19 largest institutions. The deficits amt to Usd 16.2bln for the next 200 largest banks after the top 19 banks thatwere already examined and $7.8bln for the remaining 7,700 banks. The US Tsy has said that it does not intend to extend the stress tests beyond the19 top institutions. However news of the potential capital shortfall may well increase pressure on many of the 7,900 US banks that form the backbone of the US financial system; resulting in a wave of takeovers and consolidation in the industry.
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