Citi leads US banks in lowballing capital hit in stress test
Morgan Stanley and Wells Fargo internal projections also show more capital resilience than Fed’s calculations
Three US global systemically important banks (G-Sibs) projected materially stronger Common Equity Tier 1 (CET1) capital resilience than the Federal Reserve in the latest round of Dodd-Frank Act stress test (DFAST).
Citi showed the widest gap, forecasting a trough CET1 ratio of 12% over the nine-quarter scenario envisaged in the exercise, down from a starting point of 13.6%. The Fed, by contrast
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