FDIC: 'Stress Test' Will Determine Banks' Health

WASHINGTON (AP) - The head of the Federal Deposit Insurance
Corp. says key decisions on shoring up the shaky financial system
will hinge in part on a "stress test" to determine how the
largest banks would perform if the economy weakens further.
Chairman Sheila Bair, at the same time, cautioned against
rushing to a judgment that Washington intends to take over the
industry, saying "I think there's ambiguity in the word
'nationalization.' "
Bair said, "I think that is something that would be
She said on CBS's "The Early Show" Tuesday that the stress
test must be done first, "before we determine what type of
additional capital investments the government may need to make."

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