Tag Archives: Stress Test

As of June 1, the Federal Housing Finance Agency (FHFA) has published a final rule that supplements the Enterprise Regulatory Capital Framework (ERCF) by requiring Fannie Mae and ...

A member of the Federal Reserve Board and other experts discuss changes in financial regulations and what they mean for the industry and consumers.

Two bipartisan financial services bills aimed at reducing the regulations for banks and increasing the responsibility for designation of nonbanks are now headed for the Senate. How do these bills impact the industry?

Unemployment, exchange rates, prices, income, and interest rates are some of the economic factors that will reveal whether banks in the U.S. are armed with robust capital planning processes ...

PNC Financial, one of the largest diversified financial services institutions in the U.S., released the results of its mid-cycle company-run stress test Wednesday showing they are still able to weather the storm if worst-case scenario conditions happen.

Results are in from the Fed’s Stress test of 34 banks, and nearly all banks passed with flying colors, causing the market to take off after hours. One bank, however, will have to resubmit before the end of the year…

Just how well-capitalized is JPMorgan Chase? The bank's CEO, Jamie Dimon, tells us exactly how much in his annual letter to shareholders.

The Third Federal Savings and Loan Association of Cleveland, a wholly owned subsidiary of TFS Financial Corporation, recently reported the results of its 2015 company-run stress test that is conducted in accordance with regulations of the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (OCC) under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Banks were tested under a hypothetical scenario featuring a deep recession with unemployment peaking at 10 percent, a decline in home prices of 25 percent, a stock market drop of nearly 60 percent and together the banks would see a projected $340 million total in loan losses. Results shows the bank’s aggregate tier 1 common capital ratio, which compares high-quality capital to risk weighted assets, would fall from 11.9 percent in the third quarter of 2014 to a minimum level of 8.2 percent in the scenario. This minimum level is higher than the 5.5 percent measure in 2009 and the 7.9 percent ratio from last year.

Worst-case scenario: In the event of repeat of the 2008 economic downturn, the federal government’s main mortgage buyers, Fannie Mae and Freddie Mac may need another $190 billion bailout to keep them solvent.