According to the Federal Reserve’s March 13th, 2012 press release, the majority of the largest U.S. banks continue to meet supervisory expectations for capital adequacy. This is despite what the Fed called “large projected losses in an extremely adverse hypothetical economic scenario.
The Federal Reserve’s (CCAR), Comprehensive Capital Analysis and Review, makes evaluations of the capital planning processes and capital adequacy of the largest banks. The “Stress Test” is a test that assumes the following scenarios.
A 13 % unemployment rate.
A 50% drop in the stock market.
A 21% decline in housing prices
Losses at 19 Banks totaling $534 Billion
Under this test, 15 of the 19 largest banks were still able to maintain capital rations above all 4 of the regulatory minimum levels.
Ethics Resource Center The ERC promotes an understanding of practices which promote ethical conduct via research, as well as measurement of same ethics. Compliance program effectiveness within individual organizations is also analyzed. The development of white papers and educational resources based on overall findings is considered.
