3 banks pass stress tests

WASHINGTON (AP) — Leaked results of the government’s stress tests of 19 large banks are boosting investor confidence in the financial sector.

American Express Co., JPMorgan Chase & Co. and Bank of New York Mellon Corp. will not be asked to raise more capital when federal officials announce the test results this afternoon, but Regions Financial Corp. will need to bolster its reserves, according to people briefed on the results. The people requested anonymity because they were not authorized to discuss the results.

Citigroup Inc. will need to raise about $5 billion, according to a government source who requested anonymity because he was not authorized to discuss the matter. Earlier news reports put that number closer to $10 billion.

Bank of America Corp. and Wells Fargo & Co. also will be asked to raise capital, sources said earlier this week.

The emerging news is bringing into focus a picture of the financial industry’s strength that has had investors guessing for months.

The stress tests were designed to see how the large banks and finance companies would fare if the economy worsens. Analysts expect about half the companies will be asked to raise capital.

Spokesmen for New York-based American Express, JPMorgan and Bank of New York Mellon would not comment. A spokesman for Birmingham, Ala.-based Regions Financial could not immediately be reached to comment.