All U.S. banks pass Fed's latest round of annual 'stress tests'March 6, 2015 - 09:53 AMT PanARMENIAN.Net - All 31 U.S. banks have passed the first hurdle in the Federal Reserve's latest round of annual "stress tests" to see how they would cope in the next economic crisis, BBC News reports. The central bank said the banks had enough capital to keep lending during a severe global recession. This was the first time since the tests began in 2009 that all banks had a capital level above the minimum amount. But some Wall Street giants were among the worst performers. Goldman Sachs, Morgan Stanley and JP Morgan Chase were among the five banks with the lowest readings for a capital ratio of at least 5%. The ratio compares capital - a bank's ability to withstand losses - with the loans it has issued, which are weighted for their relative risks. In the next round of tests, the Fed will determine whether the banks can maintain those capital levels and still return money to shareholders. On Wednesday, March 4, the central bank will approve or reject requests for increases to shareholder payouts such as dividends. The tests were designed to restore confidence in the U.S. financial system after the government had to provide a $700bn bailout package to stabilize hundreds of banks during the global financial crisis in 2008. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. |