Fed plan pushed the bank stress tests_Steel News_News

in order to restore market confidence in the U.S. financial system, the Fed had in February 2009 for 19 large banks on stress testing, and test results announced in May that year. The results showed that 10 out of 19 banks need capital increase, capital increase of $ 74.6 billion. Among them, U.S. banks need capital, the largest amount, $ 33.8 billion.

In March this year, 19 submitted by the Bank of the Federal Reserve in this latest capital program review, approval proposed by a number of banks, including JP Morgan Chase raised the dividend and stock buyback program. However, some banks, including Bank of America, including the capital program was rejected.

earlier this month, Fed Chairman Ben Bernanke said, want the bank to submit the capital program can demonstrate its own ability to have the losses that may arise under "sound risk management system as well as to cope with stress environment", and able to "easily" meet the new international capital requirements. Bernanke said: "We hope to achieve, even if the performance of the economy-than-expected worse, but also to ensure that households and businesses to obtain bank loans.

sources World Pipe network informed, the Fed will be introduced in the next few weeks, a new test of the draft rules and public comments. U.S. banking executives to discuss the draft content and Fed officials.

According to media reported on the 17th, the Fed plans to once again stress testing of large U.S. banks. Failed to pass the stress test banks, the Fed may be the rejection of its plans to pay a dividend.

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analysts believe that investors have been hoping that the banks to distribute generous dividends, and actively carry out a stock repurchase operations, but the pressure test again start may make their hopes dashed. The large banks have to go back to the state in times of crisis, and that all actions must be approved by the regulatory agencies World Steel Pipe News .