WSJ headlines and questions for April 4 2011

WSJ headlines and questions for April 4 2011 - WSJ...

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WSJ headlines and questions April 4, 2011. WSJ Headline March 18. Fed Poised to Ease Its Grip on Banks The Federal Reserve on Friday is expected to free some of the biggest banks from strict oversight. The Fed will allow financial institutions that have passed a fresh round of stress tests to run their businesses independent of crisis-era restrictions imposed in 2008. That will permit banks to raise dividends and buy back shares. The first round to stress tests of 19 big institutions in 2009 (SCAP) helped to restore confidence in the financial system. This time, the Fed in January began stress testing 19 large U.S. banks, called the Comprehensive Capital Analysis Review (CCAR). The banks had to show regulators whether plans to unleash capital could withstand an 11% unemployment level, a 1.5% drop in real GDP, a 6.2% drop in an index of housing prices and a 27.8% drop in equity prices. Unlike SCAP, the results will not be made public (even by the banks), except to the extent that firms let the public know they are paying dividends or buying back stock.
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WSJ headlines and questions for April 4 2011 - WSJ...

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