KeyCorp passes stress test but needs to raise $1.8B

Key reports $488M net loss in 1Q Key reports $488M net loss Berkshire Hills acquiring CNB Financial KeyCorp has passed its “stress test” but still needs to raise $1.8 billion. The Cleveland-based parent of KeyBank N.A. said it had sufficient Tier 1 capital and total capital, overall, to meet the “more adverse than expected” economic scenario the government created as part of its stress tests of the nation’s 19 largest financial institutions. However, KeyCorp (NYSE: KEY) does need to enhance the composition of its capital. The company was directed to increase its tangible common equity by $1.8 billion, which, it said, will further strengthen its ratio of such…

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