Stress test revisions ‘an embarrassment’ for the Fed
Report released last week was reissued by the bank yesterday
The Federal Reserve yesterday issued a revised report on stress test results for 30 systemically important banks published last week after detecting “inconsistencies” in assumptions about banks’ dividend and compensation plans for the next two years.
The Fed alerted the public to its miscalculations on Friday, a day after the original results were published, issuing revised figures on banks’ common Tier I capital ratios under a scenario in which equity markets tumble 50% and US house prices drop
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