The Board of Governors of the Federal Reserve System recently released results for the Dodd-Frank Annual Stress Tests for the 31 largest bank-holding companies. This is the third round of stress tests required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. According to the press release, all of the largest US-based bank holding companies have passed the test and have been building capital levels at a sufficient level to withstand severe recession and financial market volatility. The quantitative results from these tests are one part of the Federal Reserve Board's annual exercise to evaluate the capital planning and adequacy of large financial institutions. Comprehensive Capital Analysis and Review results will be released on March 11, 2015.
The Federal Reserve Board press release and 2015 Supervisory Stress Test Methodology and Results are available at: http://www.federalreserve.gov/newsevents/press/bcreg/20150305a.htm; and http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20150305a1.pdf.
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