Branch signs of nine banks involved in the 2017 U.S. stress tests.

Nine banks that have fallen short on the Fed's stress tests

Following are notable cases where banks were tripped up by the Fed's stress tests either by flunking the numbers (or quantitative) part of the test or raising red flags on a qualitative basis.
Signs on Deutsche Bank and Santander branches.

Deutsche Bank & Santander

Deutsche Bank Trust Corporation — a subsidiary of the German megabank — and Santander Holdings USA have each received qualitative objections to their capital plans in 2015 and 2016 as part of the Comprehensive Capital Analysis and Review stress tests. While the Fed said last year that the firms have made progress, they cited deficiencies in both risk management and stress testing processes.
Citi sign
A Citi logo appears on a sign above a Citibank branch in the ground floor of Citigroup Inc. headquarters in New York, U.S., on Monday, April 19, 2010. Citigroup Inc. said profit more than doubled as the global economic rebound trimmed costs for bad loans, trading revenue surpassed analysts' estimates and the value of subprime mortgage bonds increased. Photographer: Daniel Acker/Bloomberg
Daniel Acker/Bloomberg

Citi

Citigroup is among the largest banks to receive a quantitative objection, having fallen just short of the 5% minimum Tier 1 capital requirement in 2012 — the first year the Fed published CCAR results on individual firms. Citi also received a qualitative objection in 2014 because of challenges projecting revenue and losses in the Fed’s stress scenarios.
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A sign stands above a Zions Bank branch in Orem, Utah, U.S., on Monday, April 19, 2010. Zions Bancorporation, the best-performing stock in the Standard & Poor's 500 this year, reported a smaller loss as loan write-offs declined for the third straight period and profit margins expanded. Photographer: George Frey/Bloomberg
George Frey/Bloomberg

Zions

Zions is the most recent bank to have received a quantitative objection, having fallen below the 5% Tier 1 capital minimum in 2014, the first year it participated in the full CCAR exercise. The bank also was the most recent to have fallen below the minimum capital level in the Dodd-Frank Act Stress Test.
Ally Bank

Ally

Ally Financial had a rocky start to its stress testing career, having failed CCAR on quantitative grounds in 2012 and 2013, with the bank saying after the 2013 test that it disagreed with the Fed’s assessment of its capital performance under stress. But the bank has built up its capital base since, having clocked in with a 6.6% post-stress minimum in 2014 and 7.1% in 2015.
bofa-bl101216
Signage is displayed on the exterior of a Bank of America Corp. branch in New York, U.S., on Wednesday, Oct. 12, 2016. Bank of America Corp. is scheduled to release earnings figures on October 17. Photographer: Mark Kauzlarich/Bloomberg
Mark Kauzlarich/Bloomberg

Bank of America

Bank of America has not quantitatively failed a stress test, but it came close in 2014, having failed to meet the 4% leverage ratio and 6% risk-based Tier 1 capital ratio on its initial submissions. The bank resubmitted its capital plan and passed the tests, but was further embarrassed when it informed the Fed that it had submitted erroneous data that year, leading to downward revisions of its post-stress minimums.
JPMorgan Chase signage outside the company's Park Avenue office building in New York.
JPMorgan Chase & Co. signage is displayed outside the company's Park Avenue office building in New York, U.S., on Friday, Oct. 7, 2016. JPMorgan Chase & Co. is scheduled to release earnings figures on October 14. Photographer: Mark Kauzlarich/Bloomberg
Mark Kauzlarich/Bloomberg

JPMorgan Chase

The largest U.S. bank, JPMorgan Chase, has largely been confident going into and coming out of the stress testing process, occasionally releasing its results ahead of the Fed’s announcement. But the bank is not without blemish; the Fed gave the bank a conditional approval for its capital plan in 2013, but said it needed to submit a new plan later that year because of “weaknesses” in modeling.
goldman-sachs-bl071913
The Goldman Sachs & Co. logo is displayed at the company's booth on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, July 19, 2013. U.S. stocks fell after benchmark equities gauges rose to records yesterday, as worse-than-estimated profit from Google Inc. and Microsoft Corp. (MSFT) overshadowed China’s plan to remove the floor on lending rates. Photographer: Scott Eells/Bloomberg
Scott Eells/Bloomberg

Goldman Sachs

Like JPMorgan, Goldman Sachs was asked to submit a new capital plan after receiving a conditional approval in 2013 because of weaknesses in its modeling. But the firm also missed the 4% leverage ratio threshold in 2014, requiring a “mulligan” revised capital plan.
BB&T sign
A BB&T logo hangs above an entrance to the BB&T Corp. headquarters building in Winston-Salem, North Carolina, U.S., on Thursday, May 7, 2009. BB&T was not among the 10 U.S. banks the Federal Reserve determined needed to raise a total of $74.6 billion in capital. Photographer: Davis Turner/Bloomberg News
DAVIS TURNER/BLOOMBERG NEWS

BB&T

BB&T’s capital plan was rejected in 2013 on qualitative grounds, though its post-stress Tier 1 capital minimum was 7.7% that year — well above the 5% minimum. The bank resubmitted its capital plan and has not had an objection since.
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