Tax Law Muddled Banks' Stress Test Results - Articles

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Posted by: William Hammond on Jun 29, 2018

The American Banker takes a look at how the new tax reform law upended this year’s stress test results, causing several banks to incur greater-than-expected losses and spurring the Federal Reserve to constrain capital distributions at a handful of banks. Goldman Sachs, Morgan Stanley and State Street were unable to retain the minimum post-stress capital levels. All three banks fell below the 4% Tier 1 leverage ratio. For more on this. click here.