The Federal Reserve made minor changes to the stress test data of 30 banks that were released last Thursday. According to the Fed, the changes to the banks’ minimum, post-stress Tier I common capital ratios, in a severely adverse scenario, were necessitated due to “inconsistencies in the treatment of the fourth quarter 2013 actual capital actions and assumptions about preferred and employee compensation-related issuance over the course of the planning horizon.” Of the 30 firms, the correction was immaterial for 26 cases, but led to a 0.5% decline in one bank (American Express Company (NYSE:AXP)), a 0.2% decrease in another…
Fed Revises Banks’ Stress Tests Results; Only Minor Changes In Data
HFA Staff
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