The Federal Reserve has set a Jan. 7 deadline for the largest banks to prove they have the capital to withstand another financial crisis. Bank of America (BAC), JPMorgan Chase (JPM) and Citibank (C) are among the 19 largest U.S. banks that will have to file so-called "stress test" documentation to show how they would withstand another recession, the U.S. central bank said Wednesday.

New plans must be filed whether the banks plan to issue dividends or not. The Fed already conducted stress tests for banks last year, and stricter international banking regulations pushing banks to retain more capital -- and to take less risk -- have kept dividends conservative.

Bank shares of banks rose earlier this month after The Wall Street Journal reported that the Fed might start outlining financial benchmarks that would allow better-capitalized banks to boost dividends. JPMorgan Chase and others have indicated that they want to increase dividends.

But bank stocks fell on Wednesday's news. By about 3:15 p.m. Eastern time, Bank of America shares had declined 2.3%, JPMorgan shares slid 1.2% and Citigroup shares slipped 1.3%.

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Obama should keep his promise to Americans and say NO TAX BREAKS FOR THE RICH he said he would tax 250 thousand per year. Contact the White House your Senators and your congressmen and tell them Americans say NO EXTENTIONS PERIOD.

November 30 2010 at 3:13 PM Report abuse rate up rate down Reply

Nother financial crisis, the banks aren't out of this one yet. I guess the fed is testing the waters, maybe the crooks at Barney's and Timmy's house see another worse crisis coming. I would be real upset if 50 Attorney Generals were beating on my door and screaming. You know, the fed is going to have to pass the buck on to someone, it won't be US taxpayers again, as the Dem's will loose their coveted political seats, so it will go back to the originators of this mess, the banksters.

November 18 2010 at 10:49 AM Report abuse rate up rate down Reply

The Fed needs to be audited and ended...and we need the dollar put back on the gold standard to stop the printing and dilution of our dollar! we need a correlation between minimal federal taxes collected from EVERYONE and money spent in Washington.

November 17 2010 at 7:16 PM Report abuse +1 rate up rate down Reply