As we announced earlier in the day, nine of the 10 bank holding companies that were determined to need the raise, or improve the quality of, their capital have met or exceeded their required capital buffers. The tenth firm, GMAC, is expected to meet its buffer by accessing the TARP Automotive Industry Financing Program administered by the U.S. Treasury.
These institutions have increased common equity by more than $ billion, mostly through issuance of new shares, conversions of preferred to common stock, and sales of businesses and assets. The immediate effect of the completion of the assessment phase of SCAP was to provide important information about the condition of the 19 institutions at a time of substantial stress and uncertainty in financial markets.