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Thirty U.S. financial institutions on Friday received a new batch of instructions to perform their annual stress test exercise next year, the Federal Reserve Board said. Unlike last year, however, the Fed added a few changes given its ongoing concern tied to securities financing transactions.
November 1 -
Banks are going to have to work harder next year if they want to continue to pass the Federal Reserve Board's annual stress test exercise.
March 19
WASHINGTON The Federal Reserve Board on Monday accepted revised capital plans by JPMorgan Chase & Co. and Goldman Sachs after asking both firms to go back to the drawing board earlier this year.
The central bank revealed in March that both firms had passed their annual stress test exercise, but faulted them for their ability to effectively estimate how a particular risk might affect their portfolio. As a result, it rejected their earlier capital plan and required them to resubmit new proposals.
"We are pleased that the Fed determined that our CCAR process improvements met their expectations," said Jamie Dimon, chairman and CEO of JPMorgan Chase, in a statement.
Regulators can reject plans by banks to issue dividends and share repurchases if there is uncertainty that the institution would not have enough capital to withstand a crisis.
Last month, U.S. regulators approved Ally Financial Inc.'s revised capital plan after also objecting to it after the stress test. BB&T's plan, which was initially rejected, was also approved in August.
Banks are already gearing up for the next round of stress test exercises in 2014. The Fed recently released instructions to 30 U.S. firms for the annual checkup.
