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Federal banking regulators will tell the banks how they fared on government "stress tests" that judge the banks' ability to withstand a deepening recession. The results will be disclosed during meetings today at the offices of the regional Federal Reserve banks.
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This afternoon, the Fed is expected to release to the public a detailed description of the tests, but the results will not be released until the week of May 4, after the banks have had a chance to argue for changes. The pause also gives banks that need to raise new capital the chance to formulate plans that can be announced at the same time.
As part of the stress tests, regulators are using a new, tougher standard to judge the adequacy of the firms' capital reserves, according to people familiar with the matter. The change makes it more likely that some banks will be forced to sell ownership stakes to the government.
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