Randal Quarles

Stress tests

Fed should make banks stop paying dividends, Senate Democrats say

The lawmakers argued in a letter to the Federal Reserve that suspending dividend payouts would be the "prudent course of action," allowing banks to build their capital cushions and continue lending during the coronavirus pandemic.

By Neil Haggerty

June 24

Sen. Brian Schatz of Hawaii is among the Democratic senators urging the Fed to implement "across-the-board" dividend suspensions at banks it regulates.

Morning scan

The Fed's move to tweak bank stress tests; Wirecard CEO quits as money hunt continues

Big banks will need to show how well they can withstand three different scenarios before they can pay dividends; the German payments company is still looking for $2 billion of missing funds.

By George Yacik

June 22

Fed Vice Chairman for Supervision Randal Quarles

Stress tests

Banks’ dividend payouts could hinge on COVID-19 stress tests: Quarles

The senior official said the Federal Reserve’s gauge of a firm’s performance under economic recovery scenarios will affect decisions about its capital distribution, but individual results of the analysis will not be made public.

By Hannah Lang

June 19

“The sensitivity analysis will help us judge whether banks would have enough capital if economic and financial conditions were to worsen,” said Fed Vice Chair Randal Quarles.

Federal Reserve

How coronavirus could alter Fed’s thinking about stress tests

The general structure of this year’s reviews is unchanged despite the pandemic. But a supplemental analysis of banks' response to the downturn could weigh heavily in evaluating 2020 capital distributions and making adjustments to the tests over the long run.

By Hannah Lang

May 28

CRA

Democrats lay into OCC chief for pushing ahead with CRA rule

At a Senate hearing with all the bank regulators, Joseph Otting got an earful over his agency’s decision to move forward with Community Reinvestment Act reform during the pandemic. Lawmakers also urged the Fed to speed up the rollout of coronavirus relief programs.

By Neil Haggerty

May 12

The OCC "is marching ahead with its plan to dismantle a civil rights-era law that requires banks to actually serve the communities where they do business, including low- and moderate-income communities,” said Sen. Sherrod Brown, D-Ohio.

Regulatory relief

Global regulators pledge further relief for banks in midst of crisis

The Financial Stability Board said it stood ready to coordinate additional help on capital requirements, upcoming regulatory deadlines and other standards.

April 15

Stress tests

Fed stress tests will incorporate 'current events,' Quarles says

The agency's top supervisory official said the Comprehensive Capital Analysis and Review will proceed on schedule, and signaled that the Fed will look at how institutions are responding to fallout from the coronavirus.

By Hannah Lang

April 13

Stress tests

Fed finalizes new capital buffer ahead of 2020 stress tests

The rule establishes a measure of capital adequacy meant to simplify how banks are assessed in the Comprehensive Capital Analysis and Review program.

By Hannah Lang

March 4

The SCB imposes "simpler restrictions on a firm’s ability to make capital distributions depending on its projected ability to withstand stress,” said Fed Vice Chairman for Supervision Randal Quarles.

Federal Reserve

JPMorgan eyes plan to tap Fed's discount window to break stigma

Jennifer Piepszak, JPMorgan's chief financial officer, said the largest U.S. bank planned to borrow funds through the Federal Reserve's emergency lending facility in an exercise designed to break the stigma attached to that program.

February 25

Stress tests

Fed releases scenarios for 2020 stress testing cycle

The Federal Reserve on Thursday released the 2020 stress testing scenarios that it will use to evaluate the safety and soundness of 34 banks with more than $100 billion of total assets.

By Hannah Lang

February 6