Citi CEO Jane Fraser spoke at the Milken College global conference on May 1, 2023, at Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Bank stocks rose on Thursday Fed issued parameter For its annual industry stress test, the assumptions on the U.S. economy are less than in previous years.
Barclays’ Jason Goldberg said Thursday that while our unemployment rate jumped to 10% while home prices fell 33%, the 2025 exams had a smaller unemployment rate, stocks and real estate value. The decline is small. Titled “2025 Stress Test: Scenarios are easier than in the past two years”.
Regulators in one statement Issued on Wednesday after the periodic trading ends.
Shares Citigroup Noon trading increased by 2.9%, while Goldman Sachs,,,,, Morgan Stanley and Bank of America Each rose by at least 1.5%. Large banks gained more lenders than smaller lenders, with the KBW Banking Index up 1.2%, while the S&P Regional Bank ETFs grew at 0.9%.
Changes in stress tests strengthened the case of Wall Street analysts, with big U.S. banks facing a friendly regulatory regime under the Trump administration. Since the aftermath of the 2008 financial crisis, the largest U.S. banks have had to take annual exams to test their ability to withstand severe recessions while continuing to lend to consumers and businesses.
Banks have complained for years that annual stress tests are opaque and unfairly managed, industry trade groups Sue the Federal Reserve December in the exam.
According to Bank of America analyst Ebrahim Poonawala, by making the latest iteration of the test both challenging and more predictable, a smaller capital mat could be held later this year.
Bonavara wrote on Thursday: “The stress test scenario for 2025 is a broad vs last year, which increases our confidence that banks should start to relieve regulatory capital needs as we expect to turn to balanced, transparent, and more predictable ” in the notes.
