The stress test results published yesterday (March 26th) as part of the Federal Reserve's third annual CCAR follow last week's release of Dodd-Frank Act Stress Test (DFAST) results. The major difference between DFAST and CCAR is that CCAR incorporates BHCs' proposed capital outflows and assesses capital planning processes. Four BHCs' capital plans were rejected yesterday due to qualitative process issues around capital planning and risk management, as we had anticipated last week in our Stress test first take: Ten key points from the Federal Reserve's 2014 DFAST.
This First take elaborates on these key points.
"We think two to four [banks] won't be able to satisfy the Federal Reserve next week."