Banks Brace For Stress Tests: Who's Vulnerable?

The report cards go out.

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The 19 largest U.S. banks get the results of the government's "stress tests" starting today. The results will be officially released May 4 and banks still have a few days to appeal, but handicapping the results is already underway.

The AP surveys a few analysts for banks that might fare the worst:

Barclay's Capital analyst Jason Goldberg wrote Thursday that three companies could miss the mark: Cleveland-based KeyCorp, Atlanta-based SunTrust Banks Inc. and Birmingham-based Regions Financial Corp.

This week Bloomberg noted Fifth Third and Regions could face troubles thanks to exposure to the sinking commercial real estate market.

Trouble at regional banks like those named above are another bad sign for the economy. Unlike investment banks mired in subprime woes, regionals have more exposure to everyday business and commercial lending, which continues to suffer under the weight of slower growth.

  • Kirk Shinkle

    Kirk Shinkle is a senior editor for U.S. News Money and manages the Best Funds portal. Follow him on Twitter @KirkS or email him at kshinkle@usnews.com.

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