Fed stress tests stretch Goldman Sachs, HSBC
US dealers toe binding minimums in latest DFAST exercise
Goldman Sachs and the US unit of HSBC came closest to failing this year’s Federal Reserve stress tests on key leverage ratio measures, Risk Quantum analysis shows.
All 23 participating firms that underwent the Fed’s severely adverse scenario reported stressed capital and leverage ratios above regulatory minimums. However, the two dealers came close to crossing the Fed’s red lines.
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