Bank stress test results postponed
The Federal Reserve will postpone the release of stress test results for the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.
The results, originally scheduled for publication Monday, now may not be revealed until the end of next week, said the officials, who declined to be identified. A new release date may be announced as soon as today, they said.
Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.
“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers Assn. in Washington. “If they don’t let him go gently there will be a lot of mauling going on.”
The 19 firms include Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., GMAC, MetLife Inc. and regional lenders including Fifth Third Bancorp and Regions Financial Corp. The banks in the test hold two-thirds of the assets and more than half of the loans in the U.S. banking system, according to a Fed study released April 24.
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