Big Bank "Stress Test" Results Coming Soon
A federal regulatory official tells CBS News that the parameters and results of the "stress tests" of the 19 major banks will be released over the next two weeks.
(AP Photo/Pablo Martinez Monsivais)
On April 24, the regulators will release a white paper that would set out the parameters of the stress test process. It would outline the specific details of the metrics being used in these tests and how the process is working.
On May 4, the actual results of the stress tests will be made public for all 19 banks.
The regulators are asking institutions "to remain prudent" about discussing these results until May 4.
The stress tests are supposed to gauge a bank's financial health, specifically whether it has enough cash on hand to weather a continued economic downturn. Banks without enough capital could get more federal funds to meet their needs.
Last week, the Federal Reserve ordered banks to keep the test results a secret, as government officials expected to formally release the results later this month. The New York Times reported the government usually does not disclose results of bank evaluations for fear of sending investors and depositors fleeing.
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