American lenders just sailed through their last stress-free stress tests. The Federal Reserve on Thursday said that the banks it oversees have enough capital to ride out a 'severely adverse' scenario involving $612 billion of losses. That effectively opens the door to generous payouts for shareholders. But the arrival of new Fed supervisory chief Michael Barr may bring a more critical tone in the future.
to withstand bad happenings including a hypothetical surge in the unemployment rate to 10%.
Barr, who is set to replace Quarles if confirmed by the Senate, has said the damage caused under Trump needs to beThere's a good chance that means resurrecting the ability to fail firms for shaky risk controls even if their capital is abundant, among other moves the lenders themselves will claim are overly subjective. From now on, expect the tests to once again be testing.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Fed says banks could withstand 10% unemployment, 55% stock price drop in annual stress testThe Fed says 33 banks will be able to keep lending under its most severe economic projections as it issues a passing grade to banks in its annual stress test.
Baca lebih lajut »
Breakingviews - Banks cross choppy waters with Saipem rights issueItaly’s Saipem has chosen an unfortunate moment to ask investors for money. The struggling energy firm said on Wednesday it would launch a planned 2 billion euro share rights issue on June 27, twice its market capitalisation, at a deeply discounted price of 1 euro per share. Getting financing looks tough while capital markets are hit by the prospect of high inflation and a possible recession. Saipem, which in January shocked investors with a massive profit warning , needs the capital to shore up its finances.
Baca lebih lajut »
Former Cerebral employees say company's practices put patients at risk: 'It's chaotic. It's confusing. It could be extremely dangerous'Last month, the U.S. Department of Justice launched an investigation into Cerebral's prescribing practices.
Baca lebih lajut »
Russia to Trial Digital Ruble Settlements for Real Estate Deals – Bitcoin NewsThe Central Bank of Russia and participating commercial banks want to test various types of payments with the digital ruble.
Baca lebih lajut »
U.S. expands monkeypox testing in bid to better track scope of outbreakThe CDC has reported 156 confirmed cases as of today.
Baca lebih lajut »
Powell concedes Fed may trigger recession, calls soft landing 'very challenging'Federal Reserve Chairman Jerome Powell conceded that avoiding a recession will be difficult as the U.S. central bank hikes interest rates to tame inflation.
Baca lebih lajut »