Federal Reserve Proposes Annual Stress tests

According to CNBC's Steve Liesman, the Federal Reserve has just announced that it wants annual stress tests on the biggest banks in the country, as part of Dodd-Frank. Banks with over $50 billion in assets, such as Morgan Stanley MS, Citigroup C, and J.P. Morgan JPM are the subject of the stress tests. The stress tests will be used to determine the bank's financial health, and if dividends and share buybacks can be instituted. The 35 largest banks in the U.S. are going to be subject to the stress tests.