US banks sue Federal Reserve after stress test overly restricts bank capital: Report
1 week, 5 days ago

US banks sue Federal Reserve after stress test overly restricts bank capital: Report

Live Mint  

Banking associations and business groups are suing the United States Federal Reserve as they claim that the annual banking stress tests overly restrict bank capital, reported the news portal CNBC on December 24. The suit aims to "resolve longstanding legal violations by subjecting the stress test process to public input as required by federal law,” cited the news portal. The banking groups also said that they are not opposing the annual stress tests but they said the current Fed's process “produces vacillating and unexplained requirements and restrictions on bank capital.” What is a stress test? Fed called it “significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements,” cited the news portal.

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History of this topic

Big banks sue Federal Reserve over minimum cash requirements
2 weeks, 3 days ago

Big banks sue Federal Reserve over minimum cash requirements

Salon  

Some of the nation’s biggest banks and industry groups are suing the Federal Reserve over the annual “stress tests” it uses to determine how much cash banks are required to keep on hand in case of economic turmoil. The groups said they don't oppose stress tests but that the Fed's “lack of transparency” around how it conducts them translates to …

The largest US banks would survive a severe recession, the Fed’s ‘stress tests’ show
1 year, 6 months ago

The largest US banks would survive a severe recession, the Fed’s ‘stress tests’ show

Associated Press  

NEW YORK — The nation’s 23 largest banks passed the Federal Reserve’s so-called stress tests this year, a sign that the nation’s banking system remains resilient despite the recent banking crisis that led to the failure of Silicon Valley Bank, Signature Bank and First Republic Bank. The Fed’s report issued Wednesday did show some relative weakness among the midsize banks …

All big US banks pass Fed’s annual ‘stress tests’
2 years, 6 months ago

All big US banks pass Fed’s annual ‘stress tests’

Associated Press  

NEW YORK — The nation’s 33 biggest banks have enough capital to withstand a severe economic contraction, the Federal Reserve said Thursday. In its latest annual “stress tests” of the U.S. financial system, the Fed built a scenario under which the nation’s unemployment rate would more than double to 10%, and a severe contraction in commercial real estate and stock …

All big banks pass latest Federal Reserve 'stress tests'
3 years, 6 months ago

All big banks pass latest Federal Reserve 'stress tests'

The Independent  

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Banks announce billions in share buybacks after Fed approval
5 years, 6 months ago

Banks announce billions in share buybacks after Fed approval

Associated Press  

NEW YORK — The nation’s largest banks are rewarding shareholders by spending tens of billions raising their dividends and buying back stock after getting the green light from the Federal Reserve. The Fed on Thursday said it had approved the capital plans the nation’s 18 largest banks submitted as part of this year’s stress tests. Citigroup said it would buy …

Fed gives banks more stress test information, unveils 2019 scenarios; exempts less complex lenders from drive
5 years, 11 months ago

Fed gives banks more stress test information, unveils 2019 scenarios; exempts less complex lenders from drive

Firstpost  

Thirty-four lenders passed the stress test last year, while Goldman Sachs and Morgan Stanley received conditional approvals that limited their capital distributions. During the 2019 round of stress tests and going forward, big banks will know “significantly more” information about the models the US central bank uses to test banks’ books, including how hypothetical loans perform under the tests and …

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