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Goldman CEO challenges Fed’s higher stress test capital requirements

Fed’s higher stress capital buffer a key focus for analysts on Goldman Sachs Q2 results call
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Goldman CEO challenges Fed’s higher stress test capital requirements  © Cyril Marcilhacy/Bloomberg

Goldman Sachs’ chief executive has said that higher stress capital buffer requirements do not “reflect the strategic evolution” of the bank, as Goldman is believed to be appealing the Federal Reserve’s stress test results, warning that it would lose more than $40bn in loan value from a sharp downturn.

David Solomon made the comments during its second-quarter results presentation today, which beat analysts’ expectations thanks to strong fixed-income activity. 

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Michael Klimes is the investment banking and capital markets editor at The Banker. He joined the publication from Money Marketing where he was acting editor. He wrote about pensions for nine years on the retail and institutional side. He won B2B pensions journalist of the year at the Headline Money Awards 2022.
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