The Federal Reserve wants to place the U.S. banks through yearly stress tests, Financial Times reports. The Fed also wants the right to veto dividend payouts for lenders who fail to pass annual stress tests.
A draft of the new rule is expected to be approved by the Fed’s board and put out for public comment in coming weeks. The banks will be allowed to resubmit capital plans during the course of the year if they wanted to lift dividend payouts or repurchase stock.
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