Fed stress tests stretch State Street, Goldman, Morgan Stanley
State Street worst performer among complex firms on capital; Goldman and Morgan Stanley on SLR
Large US banks hurdled this year’s Federal Reserve stress tests with ease, though a handful of dealers came close to failing on key leverage ratio measures.
All 35 firms that underwent the Fed’s severely adverse scenario, the toughest round of the annual Dodd-Frank stress tests, reported stressed capital and leverage ratios above regulatory minimums.
However, some major dealers came close to crossing the Fed’s red lines. State Street’s Common Equity Tier 1 (CET1) ratio was projected to
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