Fed seeks annual US bank stress tests

Fed seeks annual US bank stress tests The Federal Reserve wants to subject US banks to annual stress tests, reserving the right to veto dividend pay-outs if they do not pass.

A draft of the new rule is set to be approved by the Federal Reserve Board and put out for public comment within weeks. Bank executives told the Financial Times that they have begun discussing the proposal with Fed officials, who remain wary of a return to the over-generous shareholder pay-outs that left financial institutions under-capitalised during the crisis.
http://link.ft.com/r/QM42II/OJQ0OF/18GC39/3OT0FD/M9DGNM/GX/h?a1=2011&a2=5&a3=17