If i were a customer at a regional or smaller credit union i would be freaked if i could pay my bills soon. The bigger regional banks i hear don't do stress testing like the big banks WFC/CITI/BofA/JPM where they get ground by regulators non stop. Their Risk staff is almost absent all together at these small players and paid peanuts so your not going to find the best and brightest. Big banks are going to be flooded with cheap money very soon and lending it out for 8-9%. Some of the employees lucky enough to hold WFC stock are going to be very rich soon.
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You have to have $250 billion or more in assets to be required to have a stress test.
Silicon Valley bank had $200 billion.
It depends on their size.
@vhs+1lBhJ9Xj When you’re rich it’s about who you know, not what you know. Talk about failing up!
Silicon Valley Bank Chief Admin Officer was the CFO of Lehman Brothers when it collapsed.
Regional banks lobbied Congress to get out stress tests and other risk mitigation under the guise that they wouldn’t fail.
Trump eliminated requirement for stringent stress-testing. You can easily find rollback video online. Sure, there's still some requirements, but not as many as there should be. Way to go, Murica!
Lol, how many of these delusional posts are you going to make? A single unrelated failure and some doomsday conspiracy theories are not going to outweigh the crooked image the public has of Wells Fargo.
“your not going to find the best and brightest”
After reading this post I bet that’s what people said about OP and the rest of his graduating class
https://www.americanbanker.com/news/why-these-banks-opted-in-to-fed-stress-tests-when-they-didnt-have-to
Looks like the Fed recently made it optional for regional bank to sit out doing stress testing and most did! A few decided to do them but looks like only if they knew they would pass.
Most the regionals even lowered their capital buffers, omg. What was the Fed thinking here.
No, it is not true. The difference is the capitalization requirements needed to pass the test. It’s not as stringent as the GSFIs but it’s not nothing, either.
The regionals have regulations and staff to manage them commensurate with their size. It is astonishing to me that people who presumably work at a GSFI, posting here, do not know or understand the regulations the industry is subject to but are somehow worried the regionals are the problem.