How Goldman Sachs Great Wins Fed’s Annual Stress Test

Unlock the editor’s digestion free

FT editor Roula Khalaf, chooses his favorite stories in this weekly newsletter.

Goldman Sachs, this year was in a economic shock in the federal reserve stress test scenario, a year ago and a year ago and a large cause of the bank’s foreign exchange payments.

In recent falls, in recent years, in recent years, to reduce risk to risk, it is reduced to reduce the bank to separate more capital against variability. However, the technical changes in the Fed test made the largest banks of the wall street. This caused a Dividend floods are growing and sharing the purchase Announced for investors on Tuesday.

From a few banks Easier test However, more than Goldman, it will raise the dividend to 33 percent to 400 percent, he said. Lower-calculated losses helped a capital requirement of the main capital to reduce the risk of risk-risked assets, previously 13.6 percent, this Fed mode is the lowest in 2020.

“Goldman was definitely a clear winner,” said Barclays Banking Analyst Jason Goldberg. Fed rejected comments.

Goldman and other large US banks are annual Stress tests Measure the ability to withstand market shocks by Fed. This year fed stress, if the economy decreases by 7.8 percent, while unemployment increases by 7.8 percent, 33 percent and commercial property prices fell to 30 percent.

A critical change to the Fed’s special benefit test Golden-headed Goldman was exposed to an area directly exposed than peers, the exclusion of private capital investments from the market shock scenario.

The Fed also said that the brands have made their models to gain more weight and losses from market hedging. Fed, in 2024, 2024, US trading loss scenarios, according to improved results improved results, “atypical customer behavior” in certain banks.

“This atypical customer behavior is therefore a helping assessment and evaluation of pre-election trade and hedge hedges, a help, a help in Morgan Stanley, Global Bank Research

However, Goldman’s projected trade losses were still lower than opponents – Morgan Stanley, JPMorgan was a loss of $ 7 billion when facing $ 10.2 billion. Morgan Stanley’s capital demand in recent years, Goldman and Citi, Goldman and Citi, Goldman and Citi, the banks that have generally lowered the requirements.

Over the years, US banks are often transparent to calculate the calculations of the Fed’s requirements, often until their losses. When one of the main industrial lobbying groups, boiled frustrations in the last year The claim filed The process against the Fed was made more transparent and the results were made to make the results less variable.

The Fed said he aims to improve the transparency of the stress test process. Analysts did not have a way to know why inappropriateness is so wide without warning of further disclosure than Fed.

“Goldman Sachs is what he has tested more hedge-in-law strategies to protect themselves in a stressful environment,” said RBC research analyst Gerard Cassidy. “This could undoubtedly be the case, but there is no transparency to say.”

Stress tests are part of a bank rules that have been using 2008 since 2008, the financial crisis used by the Fed should be relative to assets to determine the minimum level of capital banks. Capital losses absorbs, but banks prefer to have lower requirements for more flexibility.

Each 10 main points of Goldman’s demand, according to Barclaglg ‘Goldberg’s estimates, releases the capital of $ 700 million, which can be used to finance their work or returning to shareholders.

Goldman CEO David Süleyman is a movement to make a move to make a move back to its balance sheet in its balance sheet, and instead of moving to move to manage money for foreign investors instead.

Solomon said on Tuesday, the results of the stress test were “reflected in the years to reduce our capital intensity”.