Daily News: March 19, 2012

Bloomberg: Fed Corrects Loss Estimates for Citi in Stress Tests

Bloomberg reported that the Federal Reserve corrected errors in loan-loss estimates for financial firms including Citigroup in a stress test of capital during a hypothetical economic slump.

The revised calculations don’t affect capital ratios that determined whether the banks passed or failed, the Fed said in a statement.

Citigroup was among four firms whose plans the Fed rejected after the central bank estimated that, under the lender’s proposal, it might fall short of requirements in a stressed scenario. The Fed also changed calculations for Bank of America, Ally Financial, Wells Fargo and MetLife, Bloomberg noted.

To read the Bloomberg article, click here.

Previously on abfjournal.com:

Fifteen of U.S. Largest Banks Pass Stress Test, Wednesday, March 14, 2012