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Tag Archives: Gene Mcquade

Top 31 Banks Pass First Round of Federal Reserve ‘Stress Test’

Fed

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.

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