Huntington: Bank Stress Test Loser
NEW YORK (
) --
Huntington Bancshares
(BAC) - Get Report
was the loser among the largest U.S. financial companies on Tuesday, with share pulling back 3% to close at $4.83.
Huntington is among the 12 financial companies that will join the original group of 19 large U.S. holding companies subjected to two previous rounds of government stress tests, for the
Federal Reserve's
new Comprehensive Capital Analysis and Review, or CCAR, which will take place early next year.
|
The Fed on Tuesday issued its final rule on the CCAR, with requirements that all U.S. financial holding companies with over $50 billion in total assets submit detailed capital plans by January 9, 2012.
In addition to the stress testing the economic scenarios provided by the Fed, the banks will be required to "estimate potential losses stemming from a hypothetical global market shock" based on the "market price movements seen during the second half of 2008, a time of significant volatility, with adjustments made to incorporate potential sharp market price movements in European sovereign and financial sectors."
Large U.S. banks facing their third round of stress tests, through which the Federal Reserve will decide whether or not to approve capital distributions - including dividend increases and new authorizations to repurchase shares - include the "big four" of
JPMorgan Chase
(JPM) - Get Report
,
Bank of America
(BAC) - Get Report
,
Citigroup
(C) - Get Report
and
Wells Fargo
(WFC) - Get Report
, as well as
U.S. Bancorp
(USB) - Get Report
,
PNC
(PNC) - Get Report
,
Goldman Sachs
(GS) - Get Report
,
Morgan Stanley
(MS) - Get Report
, and 11 other companies.
In addition to Huntington, the group of 12 banks joining the original 19 for the next CCAR includes
Northern Trust
(NTRS) - Get Report
,
M&T Bank
(MTB) - Get Report
,
Comerica
(CMA) - Get Report
, and
Zions Bancorporation
(ZION) - Get Report
.
The Federal Deposit Insurance Corp. announced that the over 7,000 U.S. banks and thrifts
earned a combined $35.3 billion during the third quarter
.
The broad U.S. stock indexes saw slight declines when the market closed on Tuesday, following an announcement by the International Monetary Fund of a new
Precautionary and Liquidity Line
, to be available to "crisis bystanders" among IMF member nations, during times of "heightened economic or market stress."
The
KBW Bank Index
(I:BKX)
declined over 1% to close at 35.94.
Large banks seeing share prices decline 2% on Tuesday included Bank of America, which closed at $5.37; Bank of
New York Mellon
(BK) - Get Report
, at $18.02; Citigroup, at $24.46; JPMorgan, at $29.40; Northern Trust, at $36.00;
Regions Financial
(RF) - Get Report
, at $3.90; and Goldman Sachs, closing at $89.44.
Tuesday's sector winner was
First Niagara Financial Group
(FNFG)
, with shares rising two cents, to close at $8.48.
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--
Written by Philip van Doorn in Jupiter, Fla.
To contact the writer, click here:
.
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http://twitter.com/PhilipvanDoorn
.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
