(Bloomberg) -- The Federal Reserve slightly lowered Goldman Sachs Group Inc.’s stress capital buffer requirement after the Wall Street bank asked for modifications.
Goldman’s requirement was decreased to 6.2% from a preliminary 6.4% after the bank provided additional information, the Fed said in a statement Wednesday. The bank said the adjustment resulted in a standardized common equity tier 1 ratio of 13.7% effective Oct. 1.
“We appreciate the Federal Reserve’s willingness to reconsider this matter,” Goldman Chief Financial Officer Denis Coleman said in a statement. “We will continue to engage with our regulator to better understand their determinations and to advocate for a more transparent process.”
The results of the Fed’s annual stress tests inform the amount of capital that banks have to hold as part of the stress capital buffer. After last year’s exam, Goldman’s stress capital buffer fell to 5.5%.
Wednesday’s move by the Fed was the first time the regulator has approved such a request by a bank since the stress capital buffer requirement was imposed in 2020.
--With assistance from Sridhar Natarajan.
(Updates with background in fifth paragraph.)
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