stress test

The world's biggest banks - four of them British - have been told to undertake sweeping reforms, or risk failing critical stress tests.

Most of Europe's biggest banks passed stress tests aimed at shoring up confidence in the region's economy, officials said Friday.

The tests were meant to see which banks could not survive a double-dip recession and a sharp drop in government bonds.

GMAC Financial Services is in talks with the Treasury Department for a third injection of taxpayer aid as the auto lender faces a November deadline to raise the $11.5 billion capital cushion mandated by results of the government's "stress test" earlier this year.

The Treasury has given 10 banks permission pay back a total of $68 billion in government bailout money. The banks include the eight recipients of bailout money that passed regulators' stress test last month, plus the investment bank Morgan Stanley and Chicago-based custody bank Northern Trust Corp.

Fifth Third Bancorp said Wednesday it will sell no more than $750 million in common stock as part of the company's commitment to add a $1.1 billion infusion after the government's stress test showed the bank needed a buffer to withstand losses.

The government told investors Thursday what they've known since the crisis began: Some banks are healthier than others.

The Japanese stock market shot up after a three-day public holiday, catching up on this week’s global markets rally as investors took an upbeat view of the world’s economic prospects.

Some banks still need more money, but additional funds won’t necessarily come from the government.

Asian markets edged up as investors turned cautious ahead of news on the U.S. government’s “stress tests” for banks this week.

European markets opened mixed.