Below are the key highlights from the second part of the U.S. Federal Reserve’s annual stress tests as reported by Reuters.
- Fed says Deutsche Bank’s U.S. subsidiary has failed second part of annual stress tests
- Fed objects to Deutsche Bank’s capital plan due to “material weaknesses” in its data capabilities and controls.
- Fed conditionally approves capital plans for Goldman Sachs, Morgan Stanley, and State Street Corp.
- Fed says Goldman Sachs and Morgan Stanley capital levels were negatively affected by recent tax law changes.
- Fed says Goldman Sachs and Morgan Stanley will maintain capital distributions at levels paid in recent years to allow them to build up capital.
- Fed says State Street must shore up its counterparty risk management and analysis.
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