Fed "Fails" Stress Test, Releases Revised Results

Tyler Durden's picture

First the Fed screws up the "dots" - on one hand telling HFT algos not to worry about rate hikes, on the other saying the FF rate in 2016 will be a scroching 2.25%, then Yellen flubs the "6 month" statement sending stock into a tailspin and Hilsenrath and Liesman explaining in overdrive that she didn't mean what she said, and now, we learn with the traditional Friday afternoon "shove under the carpet" bomb, that the Fed also flubbed its stress test results. Sounds about par for the world's most powerful, and clueless, monetary institution.

From the Fed:

The Federal Reserve on Friday issued corrected results for the 2014 Dodd-Frank Act stress test.  For 26 of the 30 firms, the correction led to either no change or at most a 0.1 percentage point change in the firms' minimum, post-stress tier 1 common capital ratios in the severely adverse scenario.  The change led to a 0.3 percentage point increase at two firms, a 0.2 percentage point decrease at one firm, and a 0.5 percentage point decline at another.  


The capital ratios were adjusted to address inconsistencies in the treatment of the fourth quarter 2013 actual capital actions and assumptions about preferred and employee compensation-related issuance over the course of the planning horizon.


The attachment reflects the updated minimum tier 1 common capital ratios and the changes from the prior release.  The Federal Reserve will reissue a full result paper on Monday with corrections as they affect all capital ratios.

This is almost as sad, if entertaining, as the Treasury releasing a complete set of TIC data, then hours later admitting it had the goalseek formula set incorrectly, and revising the entire thing.

For those who still care about anything the megalomaniacal, if somewhat confused, central planners at Marriner Eccles have to say, here are the revised results.

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Kaiser Sousa's picture


the MoneyChangers r sociopaths...

sociopaths r pathologial liars.....

Boris Alatovkrap's picture

By definition, fictional reserve banking is insolvent operation. Double-pledge of collateral asset through derivative bet and blatantly re-hypothecation is real problem for undermine of investor faith, lynch pin of fiat currency regime.

... but what is Boris know!?

ndotken's picture

The Fed and the Treasury should let the President handle their press releases. No one knows more about lieing than the big O.

SoberOne's picture

It's Friday, im at the bar, the chicks are scroching hot. Life is good!

Boris Alatovkrap's picture

Friend, you are be caution for make sure is real girl before is leaving bar. Mistake is maybe psycho traumatic.

NotApplicable's picture

Aren't those numbers still tiny? (not that I believe them either way)

vie's picture

I sense a crash around the corner.  ZH has become controlled oposition and is helping to drive the Fed narative that they are bumbling idiots.  They didn't mean to give all the money to their friends... it's just an accident, promise.  You wouldn't blame grandma for raping and piliging the country would you?  would you?

teslaberry's picture

george washington has disccussed this before here. 

perhaps the fed , as much as zh, is itself not as much a 'single' entity as people like to think it is. after all, the fed is owned by a few major tbtf banks together as a cartel. even they disagree sometimes when it comes to issues between themselves. 


zh similarly has different writers and even a nearly all powerful editor needs to rely on helpers who may have diffeernt tastes and opinions about content from time to time. 

hey, isn't diversity of viewpoint a strenght though? too much cohesiveness could be a recipe for disaster. 


but yea, the fed are not the bumbling fools they pretend to be, nor are they the all powerful gods they appear to be behind the curtain. but they do have massive foresite. and they ( those select few insiders at the fed) know what's coming down the bend. 

i would venture to say most employees of the fed , a burgeoning number indeed, are totally clueless , nor do they care. theyre just there for the ride . and are just as sheepish as most.but make more money. and perhaps buy into the ideology of elitism by divine fiat more than most.


Boris Alatovkrap's picture

Same as it ever is...

Winston Churchill's picture

They are going to need bigger liars.

Rising Sun's picture

LMFAO!!!!!!  Da-Fed   LMFAO!!!!!!





wmbz's picture

What difference at this point does it make now

ebworthen's picture

"Baffle 'em with Bullshit" in full force.

So Q4 calculations weren't correct two days ago, but suddenly are on Friday 15 minutes after the close and a massive HFT sell of the QQQ?

pound the vix's picture

Fed takes a mulligan

Everybodys All American's picture

It's all a grand illusion ... the banker liars will keep saying whatever it takes to keep this manipulated scheme running just one more day, week, month, year, ... We are so far removed from what once was a flawed but at least a free market capitalist system that I don't know what to say anymore but burn it down and start over.

dogfish's picture

No wonder Olooser sent his family to China.


GeezerGeek's picture

No press around to report anything. Hmmmm. Maybe she's there trying to arrange asylum for after SHTF.

Yen Cross's picture

   That $ 400b of FRNs sitting in Belgian custody can always be rehypothicated.

   Look at the size of Reverse REPOs over the last 2 days. http://i.imgur.com/mIeKeyq.png

  Direct link to N.Y.Fed.

Cursive's picture

Headline from 2015


Yen Cross's picture

  +1 Cursive. That made my day. ;-)

dumbStruck's picture

Although in the initial stages central banking is reminisant of undulatory fever in that there are periods of seeming normalacy after periods of febrile incontinance of the oral cavity, the final stage is invariably staticus printicus toxicosis.

MeelionDollerBogus's picture

And the next Fed Chair will be...Bubba Jay!!

kchrisc's picture

"The Federal Reserve will reissue a full result paper on Monday with corrections as they affect all capital ratios"

Poor Winston Smith has to work all weekend.

walküre's picture

None of them can pay 2.25%. Give a comatose patient a "stress" test at zero stress and he will pass.

MH370 is the ghost flight that is synonymous with our ghost economy. Zombie plane with dead crew and passengers running for hours on remote pilot until the fuel runs out and then crashes into the deepest abyss of the planet.

The ghost economy is running at the mercy of a Fed's remote control until QE runs out and then crashes into a black hole where anarchy is the best we can hope for. Worse than the dark ages is probably more likely.

It is all so predictable.

Midnight Rider's picture

The only reason these banks "pass" the stress test is with the Fed assuming they will print another $20 trillion and give it to the banks for free in any case of any financial hiccup. Without this, they would be toast.