S&P: How The Fed’s Move To Ease Capital Restraints Could Affect Large U.S. Banks

How The Fed’s Move To Ease Capital Restraints Could Affect Large U.S. Banks (00:04:56 min)

On March 18, 2011, the Federal Reserve relaxed its capital restraints on the 19 largest U.S.banks. The move allows these institutions to increase the return of capital to shareholders in the form of dividends and share repurchases. In this CreditMatters TV segment, Standard & Poor's Director Stuart Plesser discusses our thinking on how the decision could affect the banks in the long run. Topics include the potential rating implications, stress test results, and the importance of capital adequacy in the ratings process.

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