Bank Stress Tests Redux (BAC) (C) (JPM) (MS)

As early as late spring of this year, regulators had already begun asking some of the US's largest banks to run stress tests on their balance sheets.

According to CNBC's Kate Kelly, these officials also requested banks devise plans for raising emergency capital. Sources have said the Fed, Comptroller of Currency and the FDIC were all involved, as well as BofA (NYSE: BAC), Citi (NYSE: C), JPMorgan (NYSE: JPM) and Morgan Stanley (NYSE: MS). At least two of the banks which ran tests returned scenarios which looked nearly as grim as the 2008 decline.

Despite a market which is seemingly teetering on the brink, financial stocks are bouncing heading into the afternoon trading session. The Financial Select Sector SPDR (NYSE: XLF), down more than 8 percent since Thursday of last week, is up 3.3 percent Wednesday.

Around the Financial sector:

• BofA up 5.9 percent to $7.40
  
• Goldman (NYSE: GS) up 2.6 percent to $107.29
  
• JPMorgan up 3.2 percent to $34.51
  
• Citi up 3 percent to $28.52
  
• Morgan Stanley up 4.7 percent to $16.05

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