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"We hear criticism from bankers that our models are a
'black box' which frustrates their efforts to anticipate our supervisory findings," Bernanke said. He said that over time, the banks should better understand the standards the tests are measuring. In this year's test, the Fed approved dividend payment plans and stock repurchase plans for 14 of the 18 banks outright. Two of the banks, JPMorgan Chase and Goldman Sachs, were told by the Fed that they could proceed with their plans but would need to submit new capital plans. Two other banks, Ally Financial and BB&T, were forbidden by the Fed to go through with their dividend increases and share buybacks. Ally Financial, the former financing arm of General Motors, fared the worst on the stress test. The Fed's data showed that Ally's projected capital level was below the minimum the Fed thinks a bank would need to survive a severe recession. Ally officials said they believed the Fed's testing models were unreasonable. BB&T, based in Winston-Salem, N.C., said it would resubmit its capital plan and that it believes it will be able to address the factors
that had led to the Fed's objections.
[Associated
Press;
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