Items Tagged with 'Supervisory Capital Assessment Program'


  • Get Ready for the Stress of Annual Bank Stress Tests

    Only seven banks out of nearly 100 failed the European stress tests around two weeks ago. Yet, the question still remains whether the test has done enough to ensure the strength of European financial institutions. The only real result of the entire exercise thus far seems to be that the watered-down stress tests in Europe have underscored a fundamental lack of confidence in the banking system across the proverbial pond. Indeed, investor jitters in the run up to the tests -- arguably created by the test itself -- are not subsiding.
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  • 10 Banks Cleared to Repay $68 Billion through TARP

    [Update 1 includes added details on the COP's report.] As some of the major US banks awaited approval to repay government aid through the Troubled Asset Relief Program (TARP), one regulatory oversight panel is pushing for another round of stress tests to account for already worsening economic conditions.
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  • On Their Marks, Banks are Set

    The countdown to see which banks' capital-raising efforts qualify them to repay US Treasury Department funds has begun. Nine of the largest US banks will submit capital-raising plans to regulators today under a deadline set forth in the Supervisory Capital Assessment Program (SCAP). The stress tests found these banks needed additional capital to weather severe economic conditions.
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  • Regulators Brace for TARP Exodus as Banks Snub PPIP

    [Update 1 adds details regarding BofA and Morgan Stanley.] Hours before US Treasury Department secretary Timothy Geithner warned today that toxic asset-purchasing plans are beginning to look less appealing to banks, the Federal Reserve outlined criteria it will use to evaluate applications by the 19 largest banks to redeem US Treasury capital.
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  • Putting TARP to Work

    Banks can now use US Treasury Department capital acquired through the Troubled Asset Relief Program (TARP) toward their Tier 1 capital. This boosts capital ratios and puts TARP money to work not only as a liquidity injection but also as a potential lift to the same capital ratios studied by regulators as part of the government-initiated stress tests. The Fed's announcement comes as many large banks are interested in a TARP exit, lining up to repurchase stocks
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