Forecast came true

Federal Reserve rejects 2 banks’ capital plans in annual ‘stress tests’
13 march 2015

Answered:
11 people

Federal Reserve rejects 2 banks’ capital plans in annual ‘stress tests’

Agreed
9 people
Disagreed
2 people

Forecast came true

Twenty-eight of 31 large banks received Federal Reserve approval to return capital to investors on Wednesday but only after some of the biggest Wall Street firms came perilously close to failing the regulator’s annual “stress test.” A 29th firm, Bank of America Corp. BAC, +0.00% , received conditional approval of its capital plan and can move forward with boosting dividends or stock buybacks, but must resubmit its proposal to address “certain weaknesses” including its ability to measure losses and revenue, the Fed said. If the Fed isn’t satisfied with the firm’s revised plan the regulator can later restrict these capital distributions.