Posted on 09/01/2024 5:50:10 AM PDT by C210N
Following its stress test earlier this year, the Federal Reserve Board on Wednesday announced final individual capital requirements for all large banks, effective on October 1.
Large bank capital requirements are informed by the Board's stress test results, which provide a risk-sensitive and forward-looking assessment of capital needs. The table shows each bank's common equity tier 1 capital requirement, which is made up of several components, including:
The minimum capital requirement, which is the same for each bank and is 4.5 percent; The stress capital buffer requirement, which is based in part on the stress test results and is at least 2.5 percent; and If applicable, a capital surcharge for the largest and most complex banks, which is updated in the first quarter of each year to account for the overall systemic risk of each of these banks.
If a bank's capital dips below its total requirement announced today, the bank is subject to automatic restrictions on both capital distributions and discretionary bonus payments.
Also today, the Board announced that it had modified the stress capital buffer requirement for Goldman Sachs, after the firm's request for reconsideration. Based on an analysis of additional information presented by the firm in its request, the Board determined it would be appropriate to adjust the treatment of particular historical expenses incurred by the bank in the stress testing models' input data, due to the non-recurring nature of those expenses. As a result, the bank's stress capital buffer requirement has been adjusted to 6.2 percent from a preliminary 6.4 percent.
The Board is focused on continuously improving the stress testing framework. To that end, the Board will analyze whether to revise regulatory reporting forms to better capture these types of data and to explore possible refinements to certain model components.
Here is one (of many) reports on the underlying meaning of this FED PR from last week:
Is this why Buffet dumped all his Bank of America holdings?
That’s a very plausible supposition
For those not in Banking, this “final rule” is part of Basel III. All the “globally significant banks” ie more than $100 billion will have to comply.
THE FED IS MORE THAN ‘UNDER PRESSURE”.
STARTING 9-28-2022, the Federal Reserve slid into THE RED. NEGATIVE TERRITORY.
As of 6-19-2024, the FEDERAL RESERVE WAS $176 BILLION IN THE RED.
Whoever told you that nonsense doesn’t know the difference between commercial banks and a central bank.
Be like Buffet! Get yourself into cash. The deluge finally approaches.
As for using gold as a monetary base, that would open us up to predatory currency manipulations by large gold producers and holders. The gold standard worked only when the world economy was run by Europe's gentlemen bankers determined to uphold currency values. We are long past that era.
The better course is to do as soon as possible what we must eventually do anyway: get control of federal spending and balance our issuance of debt and currency against the productive capacity and monetary needs of the US and world economies.
What a legacy left by a loony senile Biden for historians to sort through after the collapse.
Keep up the good work, loonies, vote Democrat and vote often.
I imagine most of the “loss” is based on the Mortgage Backed Securities that were belly up during the rise in interest rates. That will correct itself when the rates start coming down.
All of these adjustments are in place to keep the system from getting overheated with the coming drop in rates. It keeps the banks from over lending.
I don’t think this is “panicking” at all.
btt
Be mindful of:
. Various presidents tried unsuccessfully to create Treasury currency: notably Lincoln and JFK. Their successors wiped out any of that currency.
. The interests in the then-secret meeting at Jekyll Island (Nov 1910)
. April 1912 Titanic sinking - who was on it? Who was supposed to be on it, but didn’t board?
. FED was created in 1913 as a privately-owned bank, incorporated with shareholders (about 300, I believe)
. FED creates new fiat, at interest. IRS collects “taxes” just about every point in each dollar’s path thru the economy to “pay back” that INITIAL interest.
. Financial system is *designed* to fail - by its very nature, there can NEVER be enough M2 to pay back the debt. M2 has always been increasing, while debt has always been increasing faster.
. DJT essentially “nationalized” the FED in March 2018, by rolling it into the US Treasury.
. Rise of BRICS.
. The value of an ounce of gold today is more or less the same as 120 years ago. The value of a dollar is a tiny fraction of the dollar’s value at the time of FED creation.
“get control of federal spending and balance our issuance of debt and currency against the productive capacity and monetary needs of the US and world economies.”
Congress and other world leaders are going to get on that immediately.
Lol.
This is accurate
Bank “stress tests” have been standard for banks.
Yes but they are far more easier then what credit unions have to do it’s what makes them safer you don’t hear much about then going bust.
How will they ever be able to pay their bills?
I need to Google who was President in 2022 & 2024. Maybe there is a clue about what caused this.
Who borrowed the fiat from the Fed? How? And what does "at interest mean"?
IRS collects “taxes” just about every point in each dollar’s path thru the economy to “pay back” that INITIAL interest.
Why is the IRS collecting for the Fed? Why doesn't the Fed just collect from the borrowers? I didn't borrow from the Fed, why would the IRS take the taxes they collect from me to pay the Fed?
How much interest do you think the Fed is owed?
there can NEVER be enough M2 to pay back the debt.
Why does the debt need to be paid back? Who is it owed to and why isn't M2 enough?
DJT essentially “nationalized” the FED in March 2018, by rolling it into the US Treasury.
How did he do that? Why?
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