The first part of the stress tests was the Dodd-Frank Act Stress Test (DFAST) for 18 large financial holding companies. These tests gauged big banks' ability to withstand a "severely adverse scenario," while remaining well-capitalized with minimum Tier 1 common equity ratios of 5.0% through the end of 2014. The severely adverse scenario included an increase in the U.S. unemployment rate to over 12% in the second half of 2013, with a 50% drop in equity prices and a 20% decline in real estate prices. DFAST was completed on March 7, with only Ally Financial failing to remain well-capitalized under the Fed's projections. For the 18 largest stress-tested banks, the second part of the process was the Comprehensive Capital Analysis and Review (CCAR), completed late on Thursday. CCAR applied the same recession scenario to the banks' submitted plans to deploy excess capital through dividend increases, share buybacks or acquisitions. When announcing the CCAR results, the Fed also rejected Ally Financial's capital plan "both on quantitative and qualitative" grounds. Both BB&T and Ally need to submit revised capital plans by the end of the third quarter. Other large banks with total assets of over $50 billion were subjected to a similar set of stress tests, called the Capital Plan Review (CapPR), which included the banks' capital plans. The Fed didn't publicly announce the results of these tests, but the tested banks began announcing the results of the tests, along with plans to deploy excess capital.
These banks announced plans to deploy excess capital, beginning in the second quarter through the first quarter of 2014, in excess of many analysts' forecasts: