You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #30: Federal Reserve launches new round of stress tests [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Latest Breaking News Donate to DU
Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-25-11 08:51 AM
Response to Original message
30.  Federal Reserve launches new round of stress tests

The Federal Reserve will force the biggest US banks to model a severe eurozone recession and a US unemployment rate of 13 per cent as part of stress tests launched on Tuesday, which will culminate in public disclosure of banks stressed capital levels.

The second annual comprehensive capital analysis and review is designed to ensure that US banks are adequately capitalised to weather a worsening economic storm at home and abroad, including a peak decline of 6.9 per cent in eurozone gross domestic product.

Banks that do poorly on the exercise which also judges their capital
planning will be prevented from paying out increased dividends or share buy-backs. The Fed said even for healthy banks proposed dividends of more than 30 per cent of net income would receive particularly close scrutiny.


Printer Friendly | Permalink | Reply | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC