Fed to Give Failing Stress Test Banks Second Chance
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The Federal Reserve will give the 19 largest banks a preliminary result of its capital stress test, offering institutions that fail a chance to adjust their dividend and stock buyback policies.
The change comes after Citigroup Inc. and SunTrust Banks Inc. narrowly missed meeting the 5 percent tier one common equity to risk-weighted assets minimum capital ratio in the 2012 test at 4.9 percent and 4.8 percent respectively. Ally Financial Inc. had a stressed ratio of 2.5 percent in the last test.