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The New York TImes is reporting that the Federal Reserve has confirmed mistakes were made while scoring the bank stress test for Citigroup. From the NYT's Peter Eavis: In the original test results, the Fed projected losses on Citigroup’s first-lien home loans that would be equivalent to 9.7 percent of its total mortgages. But the Fed now says that the loss rate is 9.3 percent.
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So begins the tricky process of rolling out stress test results... The dance starts with a leak to the WSJ. Word is that the Federal Reserve has told Citigroup (C) and Bank of America (BAC) that they'll both need to raise billions m... Read Post

In the stress tests, the Federal Reserve examined how the biggest U.S. banks would fare in various economic scenarios, an exercise required under the 2010 Dodd-Frank financial overhaul. Below are the Fed's estimates for the minimum ... Read Post

Everyone's abuzz with the unexpected early release of the results of the Federal Reserve's stress test on the 19 biggest US banks this afternoon after market close. Many believe the Fed's decision to release the stress test results ... Read Post