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HU3 - Huntington Bancshares Inc News Story

€8.2 0.0  0.0%

Last Trade - 18/09/20

Sector
Financials
Size
Large Cap
Market Cap £7.68bn
Enterprise Value £15.63bn
Revenue £3.60bn
Position in Universe 117th / 1039

UPDATE 1-Federal Reserve announces post-stress test capital ratios for large banks

Mon 10th August, 2020 2:30pm
(Adds detail and context)
    By Pete Schroeder
    WASHINGTON, Aug 10 (Reuters) - The U.S. Federal Reserve
announced on Monday how much each large bank that underwent its
2020 stress tests will have to hold in additional capital.
    The results mark the first time the Fed has given out custom
capital requirements for each bank under its new "stress capital
buffer," and takes effect on Oct. 1. Goldman Sachs  GS.N  and
Morgan Stanley  MS.N  were ordered to hold the most capital of
the 34 firms tested, with ratios of 13.7% and 13.4%
respectively.
    The custom capital requirements follow stress test results
released in June, which found that banks would weather heavy
capital losses should the economic fallout from the coronavirus
pandemic drag on or worsen. The Fed ordered banks to cap
dividend payments and bar share repurchases until at least the
fourth quarter to ensure they have sufficient cushions.
 urn:newsml:reuters.com:*:nL1N2E22BO
    The new capital ratio combines the minimum capital
requirements of 4.5% and the new "stress capital buffer," which
is determined by how each bank fared under a hypothetical severe
economic downturn. That buffer is at least 2.5%, but was highest
for Deutsche Bank's  DBKGn.DE  U.S. operations at 7.8%.
    The nation's largest banks also face an additional capital
surcharge for their predominant role in the financial system,
ranging from 1% to 3.5% for JPMorgan Chase  JPM.N , the nation's
biggest bank.
     The Fed also announced that it had reaffirmed the stress
test results for five banks that requested reconsideration: BMO
Financial Corp  BMOHF.UL , Capital One Financial Corp  COF.N ,
Citizens Financial Group Inc  CFG.N , Goldman Sachs and Regions
Financial Corp  RF.N . The Fed said the additional review found
its stress test models worked as intended and there were no
errors.

 (Reporting by Pete Schroeder
Editing by Chizu Nomiyama and Jonathan Oatis)
 ((Pete.Schroeder@thomsonreuters.com; 202-310-5485;))
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