The Fed will release the results of its two annual supervisory stress test exercises later this month—the Dodd-Frank Act Stress Tests on Thursday, June 23, and the Comprehensive Capital Analysis and Review on Wednesday, June 29. The CCAR will test 33 bank holding companies with 50 billion dollars or more in total consolidated assets. For the 2016 cycle, the CCAR will include a severely adverse global economic scenario in which the U.S. unemployment rate rises five percentage points to 10 percent.
The DFAST is a complementary exercise to the CCAR that will, quote, help assess whether institutions have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over a period of nine quarters, close quote, according to the Fed. The Fed stated that while DFAST is complementary to CCAR, both efforts are distinct testing exercises that rely on similar processes, data, supervisory exercises, and requirements.
Democratic presidential nominee Hillary Clinton said she plans to meet with Senator Elizabeth Warren from Massachusetts to discuss the possibility of tougher regulations for Wall Street, according to Bloomberg. Clinton said the two have been in touch throughout the primary season. Warren, who is a popular figure among progressives, has been mentioned as a possible running mate for Clinton in November’s election.