2019-07-30 15:33:00 Tue ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
All of the 18 systemically important banks pass the annual Federal Reserve stress tests. Many of the largest lenders announce higher cash payouts to shareholders in the wake of the stress test results as of mid-2019. The total cash dividends and share repurchases can exceed $150 billion.
In response, Deutsche Bank experiences 4%+ share price gains, and JPMorgan Chase, Bank of America, and Goldman Sachs reap sharp share price increases about 2%. All of these banks now maintain more than 4.5% common equity Tier 1 capital ratios, and their supplemental bank leverage ratios are well above the 3% regulatory minimum requirement. As the annual Federal Reserve macro stress test results indicate, all of the systemically important banks hold sufficient core equity capital to safeguard against extreme losses that might arise in rare times of severe financial stress. As a result, the Federal Reserve expects these banks to remain profitable with better survival likelihood to disgorge cash to their shareholders in adverse macroeconomic scenarios. Specific macroeconomic scenarios include a 30% decline in real estate prices and a high unemployment rate with double digits. Overall, all the systemically important banks can absorb severe post-crisis losses with sufficient cash capital utilization for subsequent shareholder payout.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-07-05 09:32:00 Friday ET
Warwick macroeconomic expert Roger Farmer proposes paying for social welfare programs with no tax hikes. The U.S. government pension and Medicare liabilitie
2018-05-13 08:33:00 Sunday ET
Incoming New York Fed President John Williams suggests that it is about time to end forward guidance in order to stop holding the financial market's han
2019-01-23 11:32:00 Wednesday ET
Higher public debt levels, global interest rate hikes, and subpar Chinese economic growth rates are the major risks to the world economy from 2019 to 2020.
2018-05-21 07:39:00 Monday ET
Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative
2017-12-15 07:42:00 Friday ET
Disney acquires 21st Century Fox in a $52 billion landmark deal. This deal has a total value of about $66 billion while Disney assumes $14 billion of Fox
2018-06-10 19:41:00 Sunday ET
Apple enters a multi-year content partnership with Oprah Winfrey to provide new original online video and TV programs in direct competition with Netflix, Am