THE EVENT: The Treasury Department is directing 10 of the nation's 19 biggest banks to boost their capital levels by a combined $75 billion, as a result of the government's stress tests.

The Treasury released the much-anticipated results late Thursday, with Bank of America Corp. (BAC), Wells Fargo & Co. (WFC) and GMAC LLC being instructed to raise the most capital. JPMorgan Chase & Co. (JPM), American Express Co. (AXP) and Goldman Sachs Group Inc. (GS) were among the financial institutions deemed to not need fresh capital.

Treasury Secretary Timothy Geithner, in a press conference, said he was "reasonably confident" the banks could raise the needed capital. Federal Reserve Chairman Ben Bernanke said the results should provide "considerable comfort" about the health of the banking system.

THE DETAILS: The Treasury said that losses at the 19 banks in 2009 and 2010 could be $600 billion under the government's scenario of a deepening economic downturn. Mortgage and consumer loans could account for 70% of potential losses.

The following institutions were directed to raise capital:

* Bank of America Corp. (BAC)    $33.9 billion 
* Wells Fargo & Co. (WFC)        $13.7 billion 
* GMAC LLC                       $11.1 billion 
* Citigroup Inc. (C)             $5.5 billion 
* Regions Financial Corp. (RF)   $2.5 billion 
* SunTrust Banks Inc.(STI)       $2.2 billion 
* KeyCorp (KEY)                  $1.8 billion 
* Morgan Stanley (MS)            $1.8 billion 
* Fifth Third Bancorp (FITB)     $1.1 billion 
* PNC Financial Services (PNC)   $600 million

These institutions were deemed not to need new capital:

* JPMorgan Chase & Co. (JPM) 
* American Express Co. (AXP) 
* Goldman Sachs Group Inc. (GS) 
* Bank of New York Mellon Corp. (BK) 
* MetLife Inc. (MET) 
* Capital One Financial Corp. (COF) 
* State Street Corp. (STT) 
* BB&T Corp. (BBT) 
* U.S. Bancorp (USB)

MARKET REACTION: Most financial stocks closed lower Thursday, along with the broader market, as investors awaited the release of the test results. However, shares of Bank of America, Fifth Third and Capital One posted gains. Bank of America rose 6.5% as its capital shortfall was less than many feared. Fifth Third edged 1.3% higher as Goldman Sachs upgraded its investment rating on the bank's shares. Capital One surged 18% as expectations of its need to raise capital proved to be unfounded.

The Dow Jones Industrial Average closed 1.2% lower at 8410, the S&P 500 lost 1.3% to 907, and the Nasdaq Composite fell 2.4% to 1716.

The Financial Select Sector ETF (XLF), which tracks the financial stocks in the S&P 500, fell 2.9%.

Treasurys fell hard, driven by a poor $14 billion 30-year bond auction. Selling intensified after the auction, pushing the 10-year and 30-year yield to the highest levels since November.

Crude-oil futures ended higher Thursday, as expectations of stronger summer gasoline demand supported prices.

WHAT IT MEANS: The directives come after the government's weeks-long exercise testing how the 19 banks would fare under darker economic scenarios. Bernanke said the tests weren't "tests of solvency."

The banks that need capital will have until June 8 to develop a detailed plan for how they will raise any new required capital, the Fed and other bank regulators said Wednesday, and until Nov. 9 to implement that plan.

WHAT'S NEXT: After release of the Treasury Department's stress test results for the U.S.'s largest banks, the market will begin to guess what the results mean for the smaller banks that weren't tested.

But the government said in a statement Wednesday night that it had no intention of expanding the stress test beyond the 19 largest banks. It also said that "smaller financial institutions generally maintain capital levels, especially common equity, well above regulatory capital standards."

The following are key stories:

 
-US Treasury: 10 Of 19 US Banks Need To Raise $75B In Capital 
-Wells Fargo, Morgan Stanley Announce Stock Sales 
-IN THE MONEY: Arbs Bet Banks Will Use Stock Swaps To Get Cash 
-IN THE MONEY: What Tier 1 Common Cap Shows About The Banks 
-STRESS TESTS: Government Using Little-Known Capital Measure 
-STRESS TESTS: Regional Banks Might Face More Pitfalls 
-STRESS TESTS: MetLife's Insur Strength Carries Along Its Bank 
-STRESS TESTS: GMAC Faces Capital Drain 
-Financials Erase Gains Before Stress-Test Results 
-Bernanke: Hopes Stress Tests Add To Mkt Confidence 
-Budget Projects $91B In Losses From US Bank Failures In '09-10 
-Stress Tests Separate Strong Banks From Weak 
-Bernanke Says Regulators Must Be More Vigilant