2009 Supervisory Capital Assessment Program

Each participating financial institution was instructed to analyze potential firm-wide losses, including in its loan and securities portfolios, as well as from any off-balance sheet commitments and contingent liabilities/exposures, under two defined economic scenarios over a two-year time horizon (2009 – 2010).In particular, based on the historical accuracy of Blue Chip forecasts made since the late 1970s, the likelihood that the average unemployment rate in 2010 could be at least as high as in the alternative more adverse scenario is roughly 10 percent.The capital assessment is intended to capture all aspects of a financial institution's business that would be impacted under the baseline and more adverse scenarios.Supervisors will carefully evaluate the forecasts submitted by each financial institution to ensure they are appropriate, consistent with the firm's underlying portfolio performance and reflective of each entity's particular business activities and risk profile.There will be ample opportunity for discussions between the financial institutions and supervisory agencies regarding the loss estimates and earnings forecasts during the capital assessment process.The nineteen bank holding companies being stress-tested are as follows: The capital needs found by the test are based on the adverse scenario for the recession.

capitalFederal Reserve Systemthrift supervisorslargest U.S. financial organizationsrecessionfinancial market turmoilmacroeconomicbaseline conditionsWhat If?Tier 1 common capitaltangible common equityTreasury Departmentbank holding companytime horizonnet revenuesenior managementGDP growthunemployment rateBlue Chip Economic IndicatorsSurvey of Professional Forecastershouse priceCase-Shillerrisk managementhistorical accuracysubjective probabilityreal GDPcapital adequacybalance sheetoff-balance-sheetcontingent liabilitiescommon stockbank holding companiesU.S. TreasuryCapital Purchase ProgramBank of AmericaJPMorgan ChaseCitigroupWells FargoGoldman SachsMorgan StanleyMetropolitan Life Insurance CompanyPNC Financial ServicesU.S. BancorpThe Bank of New York MellonSunTrust BanksCapital OneRegions Financial CorporationState Street CorporationAmerican ExpressFifth Third BankKeyCorpBoard of Governors of the Federal Reserve SystemCBS NewsThe Wall Street JournalList of bank stress testsVice ChairGovernorsFederal Reserve BanksFederal Open Market CommitteeBanknotesFederal Reserve NoteFederal Reserve Bank NoteBeige BookFederal Reserve Statistical ReleaseMonetary Policy Report to the CongressDiscount windowBank rateFederal fundsFederal funds rateOvernight ratePrimary dealerHistoryAntecedentsAldrich–Vreeland ActNational Monetary CommissionFederal Reserve ActPittman ActEdge ActPhelan ActRegulation DEmergency Banking ActRegulation QGlass–Steagall ActGold Reserve ActBanking Act of 1935Bretton Woods systemEmployment Act of 1946U.S. Treasury Department AccordBank Holding Company ActFOMC actionsTruth in Lending ActNixon shockSmithsonian AgreementEqual Credit Opportunity ActHome Mortgage Disclosure ActCommunity Reinvestment ActFederal Reserve Reform ActElectronic Fund Transfer ActHumphrey–Hawkins Full Employment ActInternational Banking ActDIDMC ActFederal Reserve v. Investment Co. InstituteNortheast Bancorp v. Federal ReserveGreenspan putExpedited Funds Availability ActFIRRE ActFDIC Improvement ActGramm–Leach–Bliley ActSubprime mortgage crisis responsesEmergency Economic Stabilization ActUnfair or Deceptive Acts or PracticesCommercial Paper Funding FacilityPrimary Dealer Credit FacilityBloomberg v. Federal ReserveTerm Asset-Backed Securities Loan FacilityPublic–Private Investment Program for Legacy AssetsDodd–Frank ActDurbin amendmentCorner Post v. Federal ReserveChairsCharles S. HamlinWilliam P. G. HardingDaniel R. CrissingerRoy A. YoungEugene MeyerEugene R. BlackMarriner S. EcclesThomas B. McCabeWilliam M. MartinArthur F. BurnsG. William MillerPaul VolckerAlan GreenspanBen BernankeJanet YellenJerome PowellCurrentgovernorsPhilip JeffersonMichael BarrVice Chair for SupervisionMichelle BowmanChristopher WallerLisa D. CookAdriana KuglerSusan CollinsBostonJohn WilliamsNew YorkPatrick T. HarkerPhiladelphiaBeth M. HammackClevelandThomas BarkinRichmondRaphael BosticAtlantaAustan GoolsbeeChicagoAlberto MusalemSt. LouisNeel KashkariMinneapolisJeff SchmidKansas CityLorie LoganDallasMary C. DalySan FranciscoCentral bankCriticism of the Federal ReserveFed modelFedspeakFed putLender of last resortMonetary policy of the United StatesPersonal consumption expenditures price indexSahm ruleU.S. subprime mortgage crisisBackground informationImpact timelineUnited States housing bubblehousing market correctionRole of credit rating agenciesGovernment policies2007–2008 financial crisisGreat RecessionWritedownsIndirect economic effectsEconomic Stimulus Act of 2008Housing and Economic Recovery Act of 2008Emergency Economic Stabilization Act of 2008Dodd–Frank Wall Street Reform and Consumer Protection ActAcquired or bankrupt banks in the late 2000s financial crisisCapital Assistance ProgramFederal Reserve responsesFederal takeover of Fannie Mae and Freddie MacGovernment interventionHomeowners Affordability and Stability PlanHope Now Alliance