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Barclays Unit Clears Annual US Federal Reserve Stress Tests

(Alliance News) - British lender Barclays PLC on Monday said its US entity Barclays US LLC has ...

Alliance News 24 June, 2019 | 8:40AM
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(Alliance News) - British lender Barclays PLC on Monday said its US entity Barclays US LLC has passed the 2019 Dodd-Frank Act Stress Test, which are undertaken by the US Federal Reserve to ensure lenders can sustain a major economic recession.

"Under the Federal Reserve Bank's assessment of the Dodd-Frank Act Stress Test supervisory severely adverse scenario, Barclays US LLC projected capital ratios remained above regulatory minimum required levels across all nine quarters of the stress test," Barclays said in a short statement acknowledging the stress test results.

The Federal Reserve on Friday said 18 firms - including Bank of America Corp, JPMorgan Chase & Co and Goldman Sachs Group Inc, and Germany's Deutsche Bank AG - would sustain USD410 billion in losses in the most severe global recession scenario, but high levels of high-quality capital would sustain them through the crisis.

Since 2009, the 18 firms have increased their common equity capital by more than USD680 billion, the Fed said.

The Federal Reserve is expected to publish 2019 Comprehensive Capital Analysis & Review results for Barclays US LLC on June 27, covering both quantitative and qualitative assessments.

London-listed shares of Barclays were marginally lower at 148.70 pence each on Monday morning.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Barclays PLC 165.00 GBX 0.61

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Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

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