Sep
26
Banks to Need Billions More Capital in Tests Under Fed Plan
By-
Fed overhaul of stress tests would be tougher on big banks
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Agency will let banks assume lower dividends during duress
Wall Street would have to come up with billions of dollars in additional capital in a proposed revamp of the Federal Reserve’s annual stress tests that could also scrap some provisions that lenders have criticized.
As the Fed has signaled for months, it is considering changes that would raise the minimum capital that the biggest banks need for a passing grade, Fed Governor Daniel Tarullo said Monday. But the Fed is also mulling concessions that Wall Street has sought, such as eliminating its assumption that lenders would continue to pay out the same level of dividends and buy back shares during periods of financial duress, he said…
Banks to Need Billions More Capital in Tests Under Fed Plan
