Bank Capital Plans and Stress Tests: Federal Reserve Announces 2013 Public Release Dates for Results of the Supervisory Stress Tests Imposed by the Dodd-Frank Act and the Comprehensive Capital Analysis and Review Program

Sullivan & Cromwell LLP - January 29, 2013
Download

Yesterday, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) issued a press release announcing that it will publicly release the results of:

  • the supervisory stress tests conducted under Section 165(i)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act on Thursday, March 7, 2013; and
  • the Comprehensive Capital Analysis and Review (“CCAR”) program on Thursday, March 14, 2013,

in each case, at 4:30PM (Eastern Time).

The text of the Federal Reserve’s release, however, does not address other related and significant timing issues. More specifically:

  • the release itself does not address when the Federal Reserve will provide to institutions subject to CCAR the initial results of the supervisory “post stress analysis of capital results” in order for them to use their opportunity to make the one-time downward adjustment to their planned capital distributions from those set forth in the initial capital plan submission as provided for in the CCAR 2013 instructions;
  • because the release does not address when the initial results will be provided, it also does not address how much time a subject institution that intends to make such a downward adjustment will have to make its revised submission to the Federal Reserve prior to the March 14, 2013 release date; and
  • the release also does not indicate whether or when the Federal Reserve will provide the Supervisory Stress Test and CCAR results to subject institutions prior to their public release on March 7 and March 14, 2013, respectively.