[ForexNews]

The Federal Reserve plans to deliver results of stress tests on US banks to executives today, which reportedly may show about ten firms need additional capital, according to people familiar with the matter cited by various reports today (eg Reuters, Bloomberg, WSJ). Banks are formulating plans for filling their capital requirements, much of which would likely come from conversions of preferred shares, people said. Officials are said to favour tangible common equity equal of about 4% of a bank's assets, up from a 3% goal earlier in the process, two people with knowledge of the deliberations said last week, according to a report. On a related note, the WSJ reported that Administration officials believe many banks will be able to raise capital without tapping the TARP's remaining $109.6bn. The stress test results are due to be announced on Thursday.