capital requirements
MetLife to shed bank holding statusPosted by RJ and Makay on Mar 23, 2012 |
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After failing to pass the Federal Reserve’s recent stress test, MetLife is moving to shed its bank holding status by the end of the second quarter, interim chief financial officer Eric Steigerwalt announced today. The Fed had blocked the insurer’s capital plans to increase its dividend and buy back stock because the company’s risk-based capital was less then the Fed required.
Bank of America has come to an agreement that has Berkshire Hathaway investing $5 billion in the embattled bank. The private offering comes at a time that has seen Bank of America shares lose 30% the past month amid rumors of capital deficiency. The bank denied those rumors and news of a possible merger with JP Morgan Chase.
A continual low interest rate environment and stagnant loan growth are making financial firms a smaller part of the U.S. economy at a time when new regulations are capping fees that banks charge their retail customers. Net revenue at Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley will likely fall 3.7% in the second quarter, the fourth year-over-year decline in five quarters, according to 100 analysts compiled by Bloomberg.
