Wall
Street chief executives are to meet Daniel Tarullo, the Federal Reserve
governor, next week to thrash out disagreements over capital stress tests.
Jamie Dimon, chief executive of JPMorgan Chase, Lloyd Blankfein of Goldman Sachs, Brian Moynihan of Bank of America and James Gorman of Morgan Stanley are to meet in New York on Wednesday, say people familiar with the plan, although Vikram Pandit of Citigroup is out of New York then.
The Fed published the results of the stress tests last month, causing consternation among the largest US banks as their capital buffers were deemed less resilient to a market meltdown than had been assumed.
The biggest blow was to Citigroup, which the Fed found fell short of a minimum threshold for capital adequacy under a stress scenario if it distributed its preferred amount of cash to shareholders.
That led to Citi’s plan to step up share buybacks being vetoed after having pledged to return significant amounts of cash since its near-collapse in the financial crisis. Bank of America was in the same predicament last year.
Read more: http://www.ft.com/intl/cms/s/0/b7e32700-9097-11e1-9e2e-00144feab49a.html#axzz1tKh5sy9G
Jamie Dimon, chief executive of JPMorgan Chase, Lloyd Blankfein of Goldman Sachs, Brian Moynihan of Bank of America and James Gorman of Morgan Stanley are to meet in New York on Wednesday, say people familiar with the plan, although Vikram Pandit of Citigroup is out of New York then.
The Fed published the results of the stress tests last month, causing consternation among the largest US banks as their capital buffers were deemed less resilient to a market meltdown than had been assumed.
The biggest blow was to Citigroup, which the Fed found fell short of a minimum threshold for capital adequacy under a stress scenario if it distributed its preferred amount of cash to shareholders.
That led to Citi’s plan to step up share buybacks being vetoed after having pledged to return significant amounts of cash since its near-collapse in the financial crisis. Bank of America was in the same predicament last year.
Read more: http://www.ft.com/intl/cms/s/0/b7e32700-9097-11e1-9e2e-00144feab49a.html#axzz1tKh5sy9G
No comments:
Post a Comment