- All 34 lenders subjected to the Fed stress tests exceeded the minimum projected capital and leverage ratios under the severely adverse scenario.
- It's the third consecutive year there have been no banks failing.
- The results of the CCAR - in which banks' buyback and dividend plans are evaluated - are set for release after the market close on Wednesday. Passing the stress test does not necessarily mean a lender will pass the CCAR as the PhDs at the Fed can approve or flunk a bank based on qualitative as well as quantitative grounds.
- Among a couple of close calls, Morgan Stanley 's (NYSE:MS) supplementary leverage ratio fell to as low as 3.8% under the severely adverse scenario - not too far from the 3% minimum. Ally Financial's (NYSE:ALLY) CET 1 ratio fell to as low as 6.5% vs. the 4.5% minimum.
- Press release
- Full report
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