“Large U.S. banks and the Federal Reserve are clashing over the two-part “stress test” release schedule adopted this year, in the latest flash point between large financial institutions and their overseers.
“A conference call last week between Fed officers and bank representatives ended with the central bank refusing to accommodate demands from some lenders for a one-day release of results, according to a person briefed on the call.
“The first component of the release, data on how banks will fare in an economic downturn, is slated for after U.S. stock markets close on Thursday. The second part, the Fed’s response to buyback-and-dividend requests, is scheduled for publication a week later.
“Some executives warn that the delay could boost volatility in bank shares, as traders speculate on what the first round of results might mean for bank capital plans. Others warn of shareholder lawsuits if banks fail to disclose any information they receive, even informally, from regulators on the capital plans.”
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