Tag:
Stress Tests
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Latest Headlines
Banks poised to return capital
As 2011 ended, we unfortunately grew accustomed to a steady stream of bad news about the banking industry. But in reality, this was primarily a big bank phenomenon.
By one measure, the rest of the industry fared well. For example, lots of regional banks shored up their capital enough to in
Banks brace for Fed's stress test
In compliance with Dodd-Frank, the Federal Reserve will soon subjecting banks to its Comprehensive Capital Analysis and Review (CCAR) program, which amounts to stress tests.
The goal is to find out just how well positioned banks are against economic weakness and market shocks and determine whe
Fourth round of stress tests coming
The stress test has become a favorite tool of the Federal Reserve and regulators in general.
Such tests of big banks have several benefits, as they make clear that the Fed is actively monitoring bank stability issues. They also allow for the Fed to establish clear expectations about what banks
Fed won't allow Bank of America dividend hike
As the top consumer banks rushed to hike dividends, one massive bank was noticeable for its absence. Bank of America ( NYSE: BAC ) was the only one that did not joyously tout a payout hike in the wake of the much anticipated Federal Reserve Board stress tests. Many assumed all of the big banks w
Stress tests for banks not so stressful?
On the surface, a lot is riding on the "stress tests" the top banks are undergoing at the behest of the Federal Reserve, which would like to make the results known sometime this month. Most assume banks that do not pass will not be able to pare their capital bases to hike their dividends, which m
Should banks be able to raise dividends?
The conventional wisdom as of now is the largest consumer banks have cut their ties to the federal government. Most have paid back their TARP obligations. And the government has moved to sell off its stakes in big banks.
But the likes of Bank of America, JPMorgan Chase, Citigroup, Morgan Stanl
Ringing out 2010
Whew! What a year?
It went by very fast. Frankly, the last three years have passed in a blink. What we have lived through is nothing short of historic. Many lives have been changed. Many careers have been rocked. Recall that as 2010 got underway, many thought the worst of the financial cr
Citigroup to boost dividends?
The government's sale of its remaining 2.4 billion shares of Citigroup ( NYSE: C ) went better than expected, generating $10.5 billion. That goes with $21.3 billion already raised from previous stock sales, $2.2 million in TruPS repayments, $20 billion in Targeted Investment Program Repayment an
Private-label MBS debt looms as huge risk
We've noted that Fannie Mae and Freddie Mac are the best positioned of all MBS holders to force buybacks of mortgages and MBS. Indeed, they have already put back more than $13 billion in questionable mortgages. That number will likely go up, perhaps as high as $30 billion, according to Compass Poi
Basel III makes stress tests hard to pass
We noted recently that banks were yearning to boost dividends again, to get their stock prices moving north. The Federal Reserve Board is okay with that as long as they pass a new round of Treasury stress tests, which strikes us as a wise move. One of the biggest stress points is how well position
