Five Banks that Passed the Stress Test with Flying Colors

U.S. banks fared better during the latest round of “stress tests”, with 17 of the 18 largest banks proving that they have enough money to continue lending in the case of a hypothetical economic downturn.

Some banks fared better than others – with smaller, regional banks outperforming the big boys.

Here are five banks that passed the Fed’s latest stress test with flying colors – and how it’s impacting their stocks today:

  • Bank of New York Mellon Corp. (NYSE: BK): This New York-based bank would have the most capital on hand if a severe economic downturn were to hit the U.S. Its Tier 1 common ratio – which measures high-quality capital as a share of risk-weighted assets – was an industry-best 13.2% (5% is deemed the minimum allowance by the Fed). That victory sent BK shares up close to 2% today.
  • State Street (NYSE: STT): The Boston-based bank was right behind Bank of New York with a 12.8% common ratio. Its shares rose 1% today to a new 52-week high $59.28.
  • BB&T (NYSE: BBT): North Carolina’s second-largest bank posted a common ratio of 9.4%. The shares jumped 0.6%.
  • Fifth Third Bancorp (NYSE: FITB): The Cincinnati-based bank boasted a common ratio of 8.6%. Shares increased 0.4%.
  • Citigroup (NYSE: C): The only one of the six largest U.S. banks to crack the top 10. Citigroup’s common ratio was 8.3%, pushing the stock up 3.3% to a new 52-week high of $46.47.
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