Banks Falling Short On Stress Tests, Fed Says

Law360, New York (August 19, 2013, 3:54 PM EDT) -- The Federal Reserve said Monday that the 18 banks subject to the central bank's annual stress tests each suffered from at least one shortcoming in the way they measured their capital reserves necessary to survive an economic shock.

While the 18 banks have made some improvements, each had problems in at least one of five areas that are key to determining a bank's appropriate level of capital reserves, the Fed said in a report. Those areas range from a bank being unable to show all the...
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