Goldman Sachs (New York Stock Exchange:GS) has filed an appeal with the US Federal Reserve challenging the regulator's latest “stress test” that will force the bank to hold more capital, the Financial Times reported on Sunday, citing people familiar with the matter. affair.
The Federal Reserve's stress test determines how much capital big banks will have to set aside to help them weather a financial shock.
The Federal Reserve's annual stress test last month showed that while big banks would suffer bigger losses than the 2023 test, they are well positioned to weather a severe downturn.
The 31 banks analyzed suffered losses of 17.6% on existing loan balances and Goldman Sachs (GS) recorded losses of 25.4%.
Last month, the Federal Reserve notified Goldman Sachs (GS) has lowered its 6.4% stressed capital buffer, resulting in a standardized common equity Tier 1 ratio requirement of 13.9%, effective October 1, 2024.
“This increase does not appear to reflect the strategic evolution of our business and the continued progress we have made to reduce the intensity of our stress loss, which the Federal Reserve had recognized in the last three tests,” Chief Executive David Solomon said in a statement. statement last month.
Solomon added that the bank will continue to engage with the Fed to better understand its determinations.
