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Banks’ Split With Fed on Stress Test Seen Risking Payouts

Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. staked out sharply divergent views from the Federal Reserve on how they’d fare in a market shock, clouding prospects for higher payouts to shareholders.

The split came as lenders and regulators each released their versions of stress-test results yesterday, with Goldman Sachs predicting that its Tier 1 common ratio would be about 3.8 percentage points stronger than Fed estimated in a worst-case scenario. New York-based Citigroup calculated a ratio almost 3 percentage points better than the central bank.