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.
2019-06-30 12:37:00 Sunday ET
AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h
2019-01-02 06:28:00 Wednesday ET
New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to
2018-11-25 12:37:00 Sunday ET
The Chinese administration delivers a written response to U.S. demands for trade reforms. This strategic move helps trigger more formal negotiations between
2018-07-11 09:39:00 Wednesday ET
In recent times, the Trump administration sees the sweet state of U.S. economic expansion as of early-July 2018. The latest CNBC All-America Economic Survey
2019-11-17 14:43:00 Sunday ET
New computer algorithms and passive mutual fund managers run the stock market. Morningstar suggests that the total dollar amount of passive equity assets re
2025-09-14 14:23:00 Sunday ET
Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund