4 us banks fail federal reserve stress test
Last Updated : GMT 13:58:12
Arab Today, arab today
Arab Today, arab today

4 US banks fail Federal reserve stress test

Arab Today, arab today

Arab Today, arab today 4 US banks fail Federal reserve stress test

Abu Dhabi - Arabstoday

The Federal Reserve said Citi, SunTrust, Ally Financial and MetLife failed to show they have enough capital to survive another serious downturn. Citigroup is the third-largest US bank. The majority of the 19 tested passed. All those tested are in a much stronger position than they were after the 2008 financial crisis, the Fed added. The Fed tested the banks\' ability to withstand a similar crisis that triggered a rise in unemployment to 13%, a 50% fall in share prices and a 21% drop in house prices. Their strength is assessed by its Tier 1 capital ratio - assets held in reserve as a buffer against financial troubles. The regulator said Citigroup had a Tier 1 capital ratio of 4.9%, with Ally Financial and SunTrust at 4.4% and 4.8% respectively. MetLife had 6%, although it was measured slightly differently to the others. \"One problem (for Citi) is too much exposure in Europe,\" said Chris Lowe from FTN Financial in New York. \"It can shift its global focus, but obviously that\'s going to take time,\" he added. The banks with the best ratio were Bank of New York Mellon, at 13.1%, State Street on 12.5% and American Express at 10.8%. \"I think the tests are quite significant,\" said Matthew Bishop, US business editor of the Economist. \"Even the banks that failed like Citigroup failed largely because they were planning to hand too much money back to investors... had they not handed any money back to investors, they probably would have passed.\" The Federal Reserve has been conducting stress tests since 2009, but these were the first where results were made public. The scenario was tougher than in previous years as the Fed wants to be sure US banks will be fit enough to meet new banking rules, known as Basel III, which come into force in 2014. The results had an immediate impact on share prices, as a pass means the banks can increase shareholder dividends. The Fed was expected to release the results of the tests on Thursday, but brought them forward after JP Morgan said on Tuesday it had passed the test. JP Morgan\'s shares rose 7% after the news, while Citibank\'s fell 4%. The bank had been expected to meet requirements and pay a dividend to shareholders. The Fed wants banks to show they could not only withstand a future crisis but could keep lending, unlike the freeze of the credit crunch of 2008, which deepened economic pain. But experts remain sceptical about how effective these tests are in preparing banks for future crises. \"My bigger worry is that the Federal Reserve and other central banks completely failed to see the last banking crisis... and I don\'t necessarily feel comforted that they\'ve guessed the worst case scenario accurately,\" Matthew Bishop of the Economist told the BBC. \"I\'m not convinced that they are any better at predicting the future than they were before.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

4 us banks fail federal reserve stress test 4 us banks fail federal reserve stress test

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

4 us banks fail federal reserve stress test 4 us banks fail federal reserve stress test

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday