Feds Begin ‘Stress Tests’; New Capital Injection Plan Rolls Out

" The Treasury Department late Wednesday released details surrounding a “core element” of President Barack Obama’s financial stability initiatives. The Capital Assistance Program (CAP) will use the results of “economic assessments” of major banks to determine whether “an additional capital buffer is warranted,” at which time banks would be able to seek private sources of capital before receiving additional government aid. “In light of the current challenging market environment, the Treasury is making government capital available immediately through the CAP to eligible banking institutions to provide this buffer,” according to a media statement about the program."