The Federal Reserve is expected to start a new round of stress testing 19 of the country’s largest financial institutions this week. Unlike the previous tests, conducted in May 2009, which helped the Fed determine the solvency of the institutions—and which were graded pass or fail—the new round will be used to decide whether the banks are healthy enough to pay dividends to shareholders and are on course to meet capital requirements adopted by the Basel Committee on Banking Supervision.
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