Will Goldman Stock Benefit as Fed Lowers Its SCB Requirement?

Goldman Sachs (GS) came out as a winner after challenging the Federal Reserve to reduce its capital requirements over its June annual stress test result, which initially forced this Wall Street investment bank to hold a higher amount of capital.Introduced in the aftermath of the 2008 financial crisis, the stress tests evaluate banks' capital adequacy, liquidity and risk management practices under adverse hypothetical scenarios, such as a deep recession or a sharp decline in asset prices. It then uses the re ...