ABC News’ Matthew Jaffe Reports: Wall Street can finally stop stressing about the government test results for the nation’s big banks — on Thursday, that is.
A government source tells ABC News that regulators expect to announce the results of the stress tests late in the afternoon on Thursday, May 7.
Regulators plan to announce an aggregate assessment of the nation’s 19 biggest banks on the whole as well as an individual breakdown of the specific institutions, the source says. This information will include estimated losses for certain loans and outline the resources to absorb these losses under a worse-than-expected economic scenario.
The source emphasizes that these tests are not an assessment of the current viability of the 19 banks, but rather a what-if exercise to help supervisors figure out what additional capital buffer would be required in the event of a worse-than-expected economy.
Wall Street has been anxiously awaiting the results of the tests. Last Friday regulators announced the methodology they used in conducting the examinations.