30 US Bank Holding Companies Pass Fed’s Latest Stress Test

hurley11-150x150Banker & Tradesman
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The capital plans of 30 of the largest bank holding companies in the U.S. recently passed muster in the Federal Reserve in its latest round of stress testing, but the U.S. arms of two international banks proved repeat offenders…

Expert quote:

“When you’re a supervisor, you can call banks out for deficiencies. When you’re their custodian, you’re equally responsible for their deficiencies. And when you call them out, you’re also calling yourself out, saying that you as a custodian fell down on the job. Put another way, if one of these banks was deficient, materially deficient, one would have expected to have been brought to the public’s attention way before these annual stress tests. This is just an update on the whole class.”

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