American banks outperform Federal Reserve stress tests (29 promotions out of 30) and the European markets also like the news. In the wake of the report published yesterday evening by the Central Bank of the United States, today in the mid-morning the securities of the credit institutions travel up in Piazza Affari: the best is that of Intesa Sanpaolo (+1,4%, the Bank will approve the new industrial plan next Thursday, with CEO Carlo Messina having already ruled out imminent maxi devaluations), followed by the actions of Ubi (+ 0,9%), Banco Popolare e Bper (+ 0,5%), bpm e Unicredit (+ 0,2%).
Stress tests conducted by the Fed in its annual review of the health of the US banking system are designed to analyze the response of banks to a possible financial collapse similar to that of 2007-2009. The findings say that in a severe recession, with a 50% drop in the stock market, a one-third drop in house prices and 11,25% unemployment, the banking sector would post losses of up to $366 billion. dollars. Of all the banks screened, the only one that failed the test was Zion Barcorp, whose capital requirement for the best quality capital was found to be less than 5%, the minimum level required.
Despite the positive outcome, several banks do not seem to agree on the test results. In particular, Bank of America, for which the Fed has highlighted a Tier 1 ratio of 6% under stress conditions, has published the results of tests conducted internally which show a much higher ratio, at 8,6%. Even Well Fargo has published the results of an internal test which show numbers higher than those of the Fed. Morgan Stanley would have a Tier1 at 6,1%, JP Morgan at 6,3%, Goldman Sachs at 6,8% and Citigroup at 7%. The best performing financial institution is State Street, which in a severe crisis would have a Tier 1 rating of 13,3%, followed by Bank of New York Mellon with 13,1%.
