The Afternoon Roundup

International financial story of the day: The stress tests.

Over in the good 'ol US of A, a bunch of banks are having, uh, a little problem. Despite throwing as much TARP money as it could at them, the American government still finds some of its biggest banks underwater - Bank of America still needs $34bn and Wells Fargo $15bn. Citi is also said to need over $50bn. This may mean further government bailouts. Yet any new rescue would be on a smaller scale than many people expected: probably under $100bn in total. The banks that are still under stress may also sell parts of their businesses to raise the necessary capital, which could put some of the world's biggest asset managers on the block, including Columbia.

Regional story of the day: GCC monetary union

As The National reported yesterday, the GCC's central bank - a cornerstone of the region's push towards a monetary union - is to be headquartered in Riyadh. But not everybody's completely pleased, it would seem, as Abu Dhabi lobbied heavily to bring the bank to the UAE. Meanwhile, it remains unclear when the monetary union will formally get underway and when a Gulf currency will be introduced. Even the naming of the currency has yet to be decided, and could prompt further regional political angst. The union is viewed widely as a positive thing, however, both for intra-regional trade and for money managers and investors, who will see the ease with which they can move money and goods around increase.

The rest:

UK's highest tax rate climbs to 50%; rich flee. To Dubai?? [The Wealth Report]
No, apparently to Switzerland [Federalist]
The "Egyptian Madoff" jailed in Dubai [Zawya]
Regulation is key for Islamic finance [Arabian Business]
I'm jealous: average monthly income for a Kuwaiti family is $7,565 [Arabian Business]