Winners and Losers of Stress Test Results
Published March 16, 2012 3:50 PM
1 Min Read
Capital Projections
Most of the stress test results were boiled down to this graph, which showed Ally Financial, SunTrust, and Citigroup falling short of the 5% minimum Tier 1 common capital ratio under the Fed’s worst case scenario.
Income Projections
The Fed’s projected net revenue showed Capital One easily leading the pack.
Vikram Pandit
The fallout was worse for Citi, which must submit a new capital plan. Other test data showed the firm’s projected loan loss rates were high compared with its peers, including on C&I, residential, junior, and other consumer loans. (Image: Bloomberg News)
Jamie Dimon
Although JPMorgan Chase was blamed for leaking data early, a senior Fed official insisted it was just a “miscommunication.” Overall, Chase was about average in its projected first and second lien loss rates, but higher on its C&I lending loss projections. (Image: Bloomberg News)
Brian Moynihan
Moynihan’s Bank of America played it safe after getting burned in last year’s stress test, forgoing any attempt to raise its dividend. Its projected loan loss rates were slightly higher than its peers in most categories. (Image: Bloomberg News)
John Stumpf
Despite scoring well on its projected capital ratios in an economic slump, Wells had high projected loss rates on first lien mortgages and credit cards. (Image: Bloomberg News)
Michael Carpenter (CEO of Ally Financial)
Carpenter’s Ally scored the worst in the stress test results, with just 2.5% projected Tier 1 capital in the Fed’s severe scenario. Its loan loss projections, however, were generally lower than its peers, except on junior liens. (Image: Bloomberg News)
Gerald Hassell, CEO of Bank of New York Mellon
Bank of New York Mellon was the clear winner of the stress tests. Despite average loss rates on loans, the firm still managed to have a 13% Tier 1 common capital ratio in the Fed’s worst case scenario. (Image: Bloomberg News)
