06.03.2015, 12:29
Wells Fargo Releases Stress Test Results under Dodd-Frank Act
OREANDA-NEWS. Wells Fargo & Company (NYSE: WFC) today released the results of its company-run stress test conducted in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA).
The Federal Reserve has published the results of its supervisory-run DFA stress tests for thirty-one of the nation’s largest banks, including Wells Fargo, using the DFA standardized capital distribution requirements. Under a hypothetical severely adverse economic scenario developed by the Federal Reserve and using the standardized capital distribution assumptions specified in the DFA, the Federal Reserve estimated that for the nine-quarter test horizon ending December 31, 2016, Wells Fargo’s lowest and ending Common Equity Tier 1 (CET1) ratio under the Basel III standardized approach with transitional arrangements would each be 6.9%. Using the same economic scenario and capital distribution assumptions, we estimate that our lowest and ending Common Equity Tier 1 ratio would be 9.1% and 9.6%, respectively. Under both our and the Federal Reserve’s calculations, Wells Fargo’s CET1 ratio remains above the Federal Reserve’s minimum required ratio of 4.5%.
The Federal Reserve has indicated that on March 11, 2015, it will release its estimates of Wells Fargo’s capital ratios using the same financial assumptions, but with our planned capital actions for the two-year forecast horizon.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with \$1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014 rankings of America’s largest corporations.
The Federal Reserve has published the results of its supervisory-run DFA stress tests for thirty-one of the nation’s largest banks, including Wells Fargo, using the DFA standardized capital distribution requirements. Under a hypothetical severely adverse economic scenario developed by the Federal Reserve and using the standardized capital distribution assumptions specified in the DFA, the Federal Reserve estimated that for the nine-quarter test horizon ending December 31, 2016, Wells Fargo’s lowest and ending Common Equity Tier 1 (CET1) ratio under the Basel III standardized approach with transitional arrangements would each be 6.9%. Using the same economic scenario and capital distribution assumptions, we estimate that our lowest and ending Common Equity Tier 1 ratio would be 9.1% and 9.6%, respectively. Under both our and the Federal Reserve’s calculations, Wells Fargo’s CET1 ratio remains above the Federal Reserve’s minimum required ratio of 4.5%.
The Federal Reserve has indicated that on March 11, 2015, it will release its estimates of Wells Fargo’s capital ratios using the same financial assumptions, but with our planned capital actions for the two-year forecast horizon.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with \$1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014 rankings of America’s largest corporations.
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