Goldman Says Stress Test Fails to Reflect Evolution of Business

By Josh Beckerman

Goldman Sachs Group said the Federal Reserve notified the firm of a Stress Capital Buffer of 6.4%, resulting in a Standardized Common Equity Tier 1 ratio requirement of 13.9%, which will become effective on Oct. 1.

"This increase does not seem to reflect the strategic evolution of our business and the continuous progress we've made to reduce our stress loss intensity, which the Federal Reserve had recognized in the last three tests," Chairman and Chief Executive Officer David Solomon said in a statement. "We will engage with our regulator to better understand their determinations."

Goldman's capital plan includes boosting its to $3 from $2.75 starting July 1.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

06-28-24 1732ET