- Goldman Sachs' (GS +2.2%) Tier 1 common capital ratio would fall to 8.9% in the nine quarters up to mid-2015 under the "severely adverse scenario" in its self-administered stress test, up from this spring's prediction of 8.6%. Losses would foot to $6.2B on revenue of $15.5B, down from a $6.6B loss on $20.4B in revenue at the spring estimate.
- Like with Ciitgroup (previous), the severe scenario assumes a large decline in GDP, a sustained rise in unemployment, and falling interest rates (like for Citi, why not test sharply higher rates?).
- The Fed's stress test - the CCAR - at which banks' capital return plans will be accepted or not - takes place next year, with results due in March.
- Goldman's Mid-Cycle Stress Test Results.
Goldman passes self-administered stress test
Sep 16 2013, 14:02 ET