Citigroup and SunTrust fare worst in FPSA bank stress tests!
WASHINGTON (PNN - March 13, 2012 - The majority of the largest Fascist Police States of Amerika (FPSA) banks will continue to have enough capital to satisfy regulators, even if they suffer a financial shock that includes unemployment hitting 13% and a 21% drop in housing prices, the Federal Reserve said on Tuesday.
The Fed, in releasing its annual stress test results, said 15 of the 19 largest FPSA banks would have satisfactory capital buffers, even after considering banks’ proposed dividend increases or share buybacks.The regulator said Citigroup, Ally Financial, and SunTrust banks fared worst under the supervisory stress ratios, with Tier 1 common capital ratios of 4.9%, 4.4%, and 4.8%, respectively.
The bank holding companies that came out top were Bank of New York Mellon with a Tier 1 common capital ratio of 13.1% under the hypothetical financial shock, State Street Corp with 12.5%, and American Express with 10.8%.
Bank of America came in with 6.2%, and JPMorgan’s result was 5.9%.
JPMorgan Chase & Co., in an announcement before the Fed’s release, said it would raise its dividend 20% and authorized a $15 billion share repurchase plan after the central bank tested its capital.
Today’s results show that nearly three years of economic expansion have helped FPSA banks raise profits, rebuild capital, and increase liquidity after the collapse of Lehman Brothers Holdings, Inc. in 2008 nearly toppled the financial system.