29 out of 30 US banks able to beat stress test
US BIG banks have enough capital buffers to withstand a drastic economic downturn, according to the Federal Reserve. All 30 of the big banks except for Zions Bancorp stayed above the 5pc requirement for top-tier capital in the latest round of stress tests.
Banks had to show how they would cope with a halving of the stock market. The eight largest banks had to weigh the impact of the default of their biggest trading firm.
John Corston of Deloitte's regulatory group said capital had improved. However, several firms disagreed with the Fed's scores – Bank of America and Wells Fargo released internal test results that showed them performing better than they did under the Fed tests.
CONGRESS TO PROBE GM'S VEHICLE RECALL
THE US congressional investigation into General Motors cars defects will bring scrutiny to a company with powerful lobbying clout and strong ties in Washington.
GM's recall of 1.6 million vehicles, due to an ignition-switch problem linked to 12 fatalities, has put the firm in Congress's crosshairs. GM chief executive Mary Barra, left, will testify on April 1 to a panel investigating the ignition problem.
In what could be a preview, Ms Barra said this week that "something went wrong with our process" and "terrible things happened".
The handling of the defect by GM and federal regulators is the top priority of the committee.
BANK OF ENGLAND CULTURE WAS 'BADLY MISTAKEN'
THE Bank of England needs to abandon a culture of cosy chats following the latest financial scandal to hit London, former policymaker Adam Posen said yesterday.
Mr Posen, who served on the central bank's Monetary Policy Committee from 2009 to 2012, said BoE staff had had too much confidence that banks would regulate themselves.
"What is really most important is to see the Bank of England get away from being so trusting of the banks. That was the culture for a long time. It was not corrupt, it was just badly mistaken," he told the BBC.
The BoE has suspended an official as part of a probe into whether the central bank turned a blind eye to the alleged rigging of exchange rates in London's currency market.