Credit Suisse was the only Wall Street firm that didn't sail through the Federal Reserve's annual stress test.
The U.S. division of Zurich-based Credit Suisse has to fix problems the Fed found in its capital planning processes by Oct. 27, according to the Federal Reserve. Specifically, the Fed found weaknesses tied to assumptions the bank made for trading losses under a stress scenario. Credit Suisse has to keep its capital distributions at the 2018 level until it satisfies the Fed.
Apart from Credit Suisse, every bank won approval to boost shareholder payouts under the capital plans they submitted. Credit Suisse received a conditional non-objection, which is theGoldman Sachs and Morgan Stanley got last year. In the 2018 tests, the two U.S. investment banks fell below minimum capital levels under a stressed scenario.
And overall, the results show a resilient banking industry compared to the depths of the financial crisis a decade ago, when the U.S. had to bail out lenders. The industry has bolstered the rigor of its planning for worst-case scenarios and more than doubled the capital it has to absorb losses to about $800 billion, according to the Fed.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to dispute a credit report error to improve your creditChecking your credit report is the best way to stay on top of any potential fraudulent purchases, inaccurate information, or identity theft issues.
Read more »
Best Small Business Credit Cards Offers (Up to $1000 in Rewards)The best small business credit cards come with many perks and hefty bonuses up to $1,000. However, comparing the best business credit card offers is hard, there are a lot of business credit cards to choose from. Personally, I carry the Ink Preferred since it's the best Chase Business credit card.
Read more »
Best Credit Cards For Travel Miles 2019 - $750 In RewardsDeciding on the best credit cards for travel miles can help you can save money and earn travel miles for future trips. If you're a frequent or casual traveler, consider adding one of the following best miles credit cards to your wallet even if you're looking for one of the best airline credit cards.
Read more »
Real Recognize Real: Killer Mike Wants Rappers To Receive Credit For Their Role In Decriminalizing MarijuanaKiller Mike Is Pushing For Rappers To Get Their Proper Credit You can always count on Killer Mike to speak up for what he believes in, and this time, he’s focusing on making sure rappers get …
Read more »
H&M gets too much credit too soonThe Swedish fashion retailer’s shares rose 10% after strong June sales. The company also said it would sell more clothes at full price and divert more resources to its online business. But to fully deserve the richer valuation, a drop in the operating margin has to be reversed.
Read more »
Best Travel Credit Cards 2019 ($625+ in Travel)Finding the best travel credit cards in 2019 can be very lucrative. Banks are competing by offering bonuses of $600+ on several products including the Chase Sapphire Preferred which is my number one travel credit card. Here is my review of the top travel credit cards 2019.
Read more »