Federal Reserve orders U.S. big banks to raise more capital to avoid another crash

[unhappycamper]

http://www.rawstory.com/rs/2014/04/08/federal-reserve-orders-u-s-big-banks-to-raise-more-capital-to-avoid-another-crash/



Federal Reserve orders U.S. big banks to raise more capital to avoid another crash
By Agence France-Presse
Tuesday, April 8, 2014 18:48 EDT

U.S. banking regulators on Tuesday ordered the eight largest “too big to fail” banks to raise capital levels in a bid to address weaknesses seen in the 2008 financial crisis.

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Treasury Department’s Office of the Comptroller of the Currency adopted a final rule requiring the systemically important banks to hold significantly increased levels of high-quality capital in relation to their risk exposure, their so-called supplementary leverage ratio.

The banks affected by the rule are Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo.

The Fed’s aim is “to reduce the effect of a firm’s failure or material weakness on the financial system and the broader economy.”

[MannyGoldstein]

1. But didn't they all just pass "stress tests"?

That showed they could weather any reasonably-conceivable storm?

I'm a little confused here...