Fed arrested again stress test cycle "' for banks

WASHINGTON - Plus large banks in the country must undergo new stress tests to show that they can weather a recession, and the Federal Reserve said those who can increase dividends paid to investors.

Banks must show of the Federal Reserve Bank examiners are in good financial health and that they have sufficient capital to absorb potential losses during the next two years.

The Federal Reserve oversees major banks on Wall Street, including Citigroup, Bank of America, JPMorgan Chase & co. and Wells Fargo.

Banks have plans to file for the presentation of the US Federal Reserve that they have sufficient capital cushions to cover the losses of different economic scenarios - including whether the economy fall into a recession, FED officials said.

All the greatest 19 banks, supervised by the Federal Reserve must submit the plans – even if they do not count increase their plans dividendes.Les must be filed by 7 January 2011.

The next round of "stress tests" are an essential element of the efforts the Federal Reserve to ensure that banks - and the entire financial system - are stable.Safety and soundness of the banking system is an ingredient for the health of the economy.

Banks that do not pass the stress tests shall take measures to raise new capital to build their cushions.

First Fed stress tests were conducted in 2009 that the country was still shaken by the financial crisis and worst recession since the 1930s.These results were made public in an effort to strengthen confidence in the u.s. banking system then fragile.Les tests to come, however, not be made public, reserve US Federal says.It is tradition to keep these confidential banking regulators.

Banks wishing to increase their dividends also needs to show the Fed they would plan to comply with more stringent requirements of global capital recently accepted in Basel, Switzerland.

Banks will have to reimburse the Federal Government to rescue money received during the financial crisis before they can increase their dividends.

To the financial crisis, banks cut their dividendes.En boosting their payments, banks would be able to attract new investisseurs.JPMorgan Chase is among interested banks to stimulate dividend payments.

JPMorgan Chase CEO Jamie Dimon said that he wished to increase the annual dividend of the Bank to 75 cents and $1 per part.Il is currently 20 cents per share.

The Fed hopes to move quickly to complete the tests of stress.Les banks meet guidelines should increase their dividends in the first quarter of 2011, responsible for the u.s. Federal Reserve said.

Copyright 2010 the Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.


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