Wednesday, March 14, 2012
Citigroup was one of four large US banks that flunked stress tests aimed at seeing how they would hold up in a new economic crisis,Federal Reserve data showed Tuesday.
Three others — Ally, Suntrust and MetLife — also failed the tests, while 15 other large bank holding companies passed the exercise, the Fed said.
As a group, though, the 19 came through strongly, said the Fed, thanks to pressure for them to boost capital over the past three years as the financial sector digs its way out of the deep 2008-2009 recession.
“In fact, despite the significant projected capital declines, 15 of the 19 bank holding companies were estimated to maintain capital ratios above all four of the regulatory minimum levels under the hypothetical stress scenario,” the Fed said.
This article was posted: Wednesday, March 14, 2012 at 4:16 am