Financial Roundup: "Stress Test" Due, Questions at Citi, SEC to Grill Bank Directors

Bank “stress tests” due – President Barack Obama, scheduled to address Congress and the nation on the matter tonight, will push for stress tests later this week to check the health of 20 of the country’s largest banks. Obama’s aim is to identify future loan problems and dispel a cloud over the banks’ stock values. [Source: Bloomberg]

Washington gears up for bigger bank shares — While saying it doesn’t want to nationalize tottering banks, the Obama administration has revamped the terms of its aid program. Instead of taking current preferred shares, the government may take common share stakes in bailed-out banks such as Citigroup to give them more capital. [Source: The Washington Post]

Grassley wants answers – Sen. Chuck Grassley, a Republican who is the ranking member of the Senate Finance Committee, has sent a tersely-worded letter to Treasury Secretary Timothy Geithner demanding details of his plans to buy common, rather than preferred, shares of Citigroup stock. Doing so will burden taxpayers with more risk, he says. [Source: Senator Grassley's Office]

SEC to probe bank directors — SEC Chairman Mary Schapiro plans to review whether directors of banks provided sufficient oversight. She’ll look into the skill sets of board members to see whether they are qualified to serve as directors. [Source: The Washington Post]

Down and out in Beverly Hills — First Bank of Beverly Hills has 30 days to find a buyer. The $1.5 billion-asset bank has been badly hurt by lending for condominiums. [Source: American Banker]

Money safe at closed Oregon bank — Depositors have been assured that their money is safe at the Silver Falls Bank of Silverton, Ore. which has been closed by state regulators. [Source: The Oregonian]