Banks stumble in second round of Fed stress tests
Fed demands Deutsche Bank take remedial action; two others told not to increase dividends
Four banks ran into trouble in the Federal Reserve’s second round of stress testing, and one was told its capital plan fell short of expectations, the Fed revealed on June 28.
Of the 35 banks subjected to the tests, only Deutsche Bank’s US unit was found to have “widespread and critical deficiencies” with its capital plan.
Goldman Sachs and Morgan Stanley were handed what the Fed calls “conditional non-objections”, contingent on them maintaining dividends at the same levels seen in recent
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