Receiving Wide Coverage ...
Big day: Banks could use some good news this week, but it remains to be seen whether there's any in sight. On Wednesday, the Federal Reserve will release the second part of its annual stress tests, which could prove a bright spot for some banks. The exams will determine how much capital they can return to shareholders through buybacks or dividends.
All of the banks sailed through the first part of the tests last week, based on hypothetical shocks to the system, and the economy has grown healthier since last year – at least up until the Brexit vote – but that may not be enough for regulators.
The results "may test investor patience," according to a column in the New York Times.
The Wall Street Journal takes a deep dive. It notes in one piece that banks have been overly optimistic about their performance on the tests in the past, though it appears they've changed their tune this time around with "a more humble tack."
The paper also finds that, globally, the banks spent $29 billion on consultants last year – a big chunk of that on stress tests. Unsurprisingly, the gig is a slog. "Stress has become a problem among stress-test employees, who often race to finish the exams before the Fed's deadline," the report says.
Finally, here's a post on five things to watch when the results are announced.
More questions, few answers: The Brexit hand-wringing continues. The latest analyses look at the impact of Britain's vote on the biggest banks, London's real-estate market, potential upsides for U.S. homeowners and concerns about the effect on overseas regulation of finance. Elsewhere: is this Europe's "Lehman" moment?
From bad to worse: More dismal news for Lending Club. Its former CEO – who, granted, was recently ousted for bad behavior – took on loans for himself, as did his family, to boost results in 2009. The company will start imposing restrictions on investor redemptions from one fund. Wall Street Journal, Financial Times
New York Times
Don't keep 'em waiting: Customers holding Walmart prepaid cards weren't able to access their accounts for several days last month – and two Senate Democrats aren't happy about it. RushCard faced a similar snafu last year and recently paid out $19 million to cardholders as a result.