Fed: Biggest US banks strong enough to withstand recession

Morgan Stanley Barclays Goldman Sachs JPMorgan Credit Suisse Citigroup and Bank of A

The exams, started after the 2008 market crash, assess how banks would handle hypothetical turmoil, such as surging unemployment, a sharp drop in housing prices or an extended stock slump.

The results portrayed a picture of increasing resilience in the banking sector, with the 34 participating firms having added $750 billion in common equity capital since 2009. Firms that handily clear the first phase typically have more room to make payouts to shareholders.

Rejoice! Fed Stress Test Day is upon us! And under regulators selected by President Donald Trump, that may continue. Passing the stress test does not necessarily mean a lender will pass the CCAR as the PhDs at the Fed can approve or flunk a bank based on qualitative as well as quantitative grounds. And two, whether firms were good at identifying and measuring risk when they craft their plans. "They're doing better but still aren't generating enough economic earnings to backfill for a systemic shortfall".

In this scenario, loan losses would amount to US$383 billion over nine quarters. Among other conclusions: Bank of America Corp. would suffer a US$26.4 billion hit to its pretax profit under that scenario, the most of any lender.

They are: Ally Financial, American Express, BancWest, Bank of America, Bank of New York Mellon, BB&T, BBVA Compass, BMO Financial, Capital One, Citigroup, Citizens Financial, Comerica, Deutsche Bank, Discover, Fifth Third, Goldman Sachs, HSBC, Huntington Bancshares, JPMorgan, KeyCorp, M&T, Morgan Stanley, MUFG Americas Holdings, Northern Trust, PNC, Regions Financial, Santander Holdings, State Street, SunTrust, TD Group, U.S. Bancorp, Wells Fargo and Zions Bancorp.

Joel Embiid, Ben Simmons take shots at Ball family following Lakers' pick
At UCLA, Ball averaged 14.6 points, 6.0 rebounds and 7.6 assists per game in 35.1 minutes per game. But Lonzo has a lot to show and prove as a springboard for what the Ball brothers can do.

The biggest USA banks' own estimates for loan losses were more optimistic than the Fed's - a trend that has arisen in past years as well. The Fed uses $50 billion as the current yardstick, but some legislators would like to raise the level to about $250 billion. That's when the Fed will announce whether it has approved banks' requests to increase dividends or buy back shares.

The Comprehensive Capital Analysis and Review (CCAR) is an annual exercise to evaluate the capital planning process and capital adequacy of large banks.

Almost nine years on, banking industry profits have been steadily rising and banks have been lending more freely.

The results released on Thursday are the first of a two-part exam.

Related:

  • Bells Ring For Whole Foods and Amazon

    Bells Ring For Whole Foods and Amazon

    Amazon and Whole Foods have the combined power to engage in low cost pricing - something mom and pop shops certainly can't do. Mackey was vague in responding to questions after his opening remarks, simply saying that Whole Foods will have to "evolve".
    Over 50 Injured as Deck Collapses at Montana Lodge

    Over 50 Injured as Deck Collapses at Montana Lodge

    Determining the cause of the collapse will be up to the resort's insurer, Lake County Sheriff Don Bell said. A 10-foot-high section of the deck buckled after a memorial service held in the camp's lodge.

    UAE calls for western monitoring of Qatar

    For its part, Saudi Arabia went all in behind the Egyptian military, which ousted Morsi just over a year after he was elected. Now, after a visit last month by President Trump to Riyadh, the Saudi Arabian capital, they have done worse.
  • The Washington Redskins Scored a Win in Supreme Court Trademark Case Ruling

    The football team had tried to convince the Supreme Court to hear their case instead of The Slants but they were denied. The Supreme Court says Muslim men detained after the September 11 attacks can't sue top US law enforcement officials.
    Alex Jones interview draws 3.5 million viewers

    Alex Jones interview draws 3.5 million viewers

    But even a masterclass in dress-down interviews wouldn't undo the damage already done by NBC News and Kelly. SUNDAY NIGHT WITH MEGYN KELLY (0.5/3 in 18-49, 0.7 in 25-54, 3.5 million viewers overall from 7-8 p.m.
    Senate Dems plan to jam up business to protest health push

    Senate Dems plan to jam up business to protest health push

    " Republicans must solve the immediate crisis in the individual markets and take time to write a responsible health care bill". Majority Leader Mitch McConnell needs to be as close to 50 votes as possible before he unveils his legislation.
  • Messaging app Hike rolls out payment wallet

    Messaging app Hike rolls out payment wallet

    Hike Messenger has launched the new Hike 5.0 featuring Hike Wallet , the first payment feature in a messaging app. Users can choose from 10 well-crafted virtual envelopes and add their personal message to it.
    Trump administration order threatens quality apprenticeships for NC workers

    Trump administration order threatens quality apprenticeships for NC workers

    Earlier this year, Trump accepted a challenge to create 5 million new apprenticeships, according to the news outlet. Trump also took a tour of the school that included a stop at a classroom filled with tool and die machines.
    Was gunman ready to head home before congressman's shooting?

    Was gunman ready to head home before congressman's shooting?

    All three members of the House whose names were reported by The Daily Caller are members of the conservative House Freedom Caucus. Sue Hodgkinson said she felt "horrible", saying, "I had no idea this was going to happen and I don't know what to say about it".
  • The Venom Movie And Spider-Man: Homecoming Might Be Connected After All

    The Venom Movie And Spider-Man: Homecoming Might Be Connected After All

    Whenever it does end up releasing , the eight minutes of gameplay that we got at E3 was enough to sell many people on the game. Venom (starring Tom Hardy in the lead role) and Silver & Black stand-alone films have been announced.
    Portugal goal against Mexico annulled after video review

    Portugal goal against Mexico annulled after video review

    Commenting on the match, FIFA Secretary General Fatma Samoura said tickets for the group game between Portugal and Russian Federation have been sold.

    Trump May Be Laying Groundwork to Fire Mueller — WashPost

    With President Trump's instructions, Vice President Mike Pence has hired Richard Cullen, his own lawyer to represent the U.S. A day earlier, Trump had questioned why his general election rival Hillary Clinton was not being investigated.

Comments

Latest news

Queen s Speech for 2018 cancelled to deal with Brexit
After facing intense pressure to soften her Brexit plans since the election , May promised to consult widely. Liberal Democrat leader Tim Farron said: "This slimmed down Queen's Speech shows a Government on the edge".

List of GOP lawmakers found in Virginia shooter's pocket
All three members of the House whose names were reported by The Daily Caller are members of the conservative House Freedom Caucus. Shortly after 7 a.m., he began shooting at a group of congressmen and their aides who were in the middle of a practice session.

Chinese airline among world's top ten in 2017
This also marks the third time the airline has won all three First Class award categories at the World Airline Awards . The A380 flights include 26-inch entertainment screens, seats almost 2-feet wide and privacy partitions.

US police probe Muslim girl's killing as 'road rage'
Alsalti says Hassanen's slaying hits close to home because he has a sister around her age who looks "just like her". Police said the argument escalated and Torres pulled over, chased the group with a baseball bat and attacked Nabra.

Cosby team triumphant, but sex crime retrial, lawsuits loom
NY defense lawyer Harvey Fishbein noted Cosby's lawyers had shown fewer of their cards, resting without calling any witnesses. Constand herself sued Cosby in 2005 and settled for an undisclosed sum. "We're going to trial". "It was too much to handle".

United Nations: Refugee displacement at seven-decade high
Of that figure, one in every three people, roughly 4.9 million people , were hosted by the least developed countries. Canada announced an additional contribution of $86 million to assist starvation and war ravaged South Sudan.

Two areas to watch for tropical development
A low-pressure system in the Gulf of Mexico could be the first storm to threaten Florida during the 2017 hurricane season. It is forecast to move into the Gulf of Mexico this week and will have a high chance to develop as well.

Amazon.com to acquire Whole Foods at US$42 per share
Acquiring Whole Foods will provide Amazon more physical locations to experiment with, and eventually expand its retail business. PCC has also partnered with its competitor, offering delivery through Amazon Prime Now since April previous year .

Newtown parent won't view NBC interview of Alex Jones
The fringe element that Jones represents needs to be understood, which isn't the same as needing to be condoned. Sunday Night , and all Sunday originals, was again overwhelmed by sports this week.

Angry White House Reporters Blast 'Useless' Sean Spicer
Acosta's comments came just after Spicer held an off-camera press briefing that reporters were not allowed to record. Some networks, like CNN, MSNBC, and C-SPAN, have instead carried the audio of the briefings live.

Henderson on course for Meijer win
With the par for the day being reduced to 69, she was five-under 64 for the round and Aditi had a 66, which was three-under. Lydia Ko of New Zealand hits her tee shot on the third hole during the final round of the Kingsmill Championship.

Trump Cheerleaders Turn on Special Counsel Mueller
Spicer had said that Ruddy was at the White House Monday to meet with White House aides, but did not speak with the president. Mueller, "he has no intention to do so", the White House spokeswoman Sarah Huckabee Sanders told reporters late Tuesday.

Sheriff David Clarke reverses acceptance of Homeland Security role
Homeland Security and the White House did not immediately respond to requests for comment. "And feel for my career staff". The Milwaukee County Sheriff reportedly rescinded his acceptance of the position, which he was slated to begin in June.

Habs send D Beaulieu to Sabres for pick
He opened the season as Shea Weber's partner on the top defense pairing, but quickly found himself lower on the depth chart. Beaulieu immediately improves the Sabres' blue line under new coach Phil Housley, a Hall of Fame defenseman.

Lead Detected In 20 Percent Of Baby Food
Baby food versions of apple and grape juices and carrots had more samples with detectable lead than the regular versions. This spurred the organization to examine data from the FDA's Total Diet Study for specific sources of exposure for kids.

Other news