- in Uncategorized by schooloftrade
UP-DATE: Stress-Tests Released for major U.S. banks
After markets closed Thursday, the Fed released the results of the latest annual stress tests for major U.S. banks. The results show major improvement in bank capitalization, although in varying degrees. Banks appear to be in good health. The Federal Reserve said 17 of the 18 largest U.S. banks could withstand a deep recession – reflecting high unemployment – and maintain capital above a regulatory minimum. Ally Financial dipped below a 5 percent Tier 1 common ratio, a regulatory minimum. Two banks squeaking by were Morgan Stanley and Goldman Sachs. But the stress test assumptions were very stringent. The following is from the Fed’s report. “The nation’s largest bank holding companies have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are collectively in a much stronger capital position than before the financial crisis, according to the summary results of bank stress tests announced by the Federal Reserve on Thursday.” The results tables are complex and can be found at: |
