The Federal Reserve Board released the results of its stress tests for 2020 and additional sensitivity analyses that the board conducted in light of the coronavirus event. “The banking system has been a source of strength during this crisis,” Vice Chair Randal Quarles said, “and the results of our sensitivity analyses show that our banks can remain strong in the face of even the harshest shocks.” The board took several actions following its stress tests to ensure large banks remain resilient despite the economic uncertainty from the coronavirus event. For Q3 of this year, the board is requiring large banks to preserve capital by suspending share repurchases, capping dividend payments, and allowing dividends according to a formula based on recent income. The board is also requiring banks to re-evaluate their longer-term capital plans. Publicly traded companies in the space include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC).
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