Tuesday, May 1, 2012

Fed criticizes big banks over stress tests

Welcome to the morning roundup. Here's a look at today's banking and finance news.

Stress tests. The Federal Reserve criticized how some of the largest U.S. banks calculated possible losses and planned dividends in the latest round of stress test, Bloomberg reported, citing people familiar with the process. Those comments will be part of feedback letters sent to the banks this week, covering everything from data collection to risk measurement, the sources said.

Fake euros. In Italy, enterprising counterfeiters are making "fake money, done well," the New York Times reports. A counterfeiting cottage industry there accounts for more than half of the 550,000 to 800,000 fake euro notes pulled from circulation annually by European central banks, the Times writes.

BofA layoffs. The Wall Street Journal has more on Bank of America's planned job cuts. Sources told the newspaper the Charlotte lender will eliminate 2,000 jobs from its investment banking, commercial banking and non-U.S. wealth-management divisions.

Fed policy. Two top Federal Reserve officials said they see no need for the central bank to ease monetary policy any further, Reuters reports. But the officials don't necessarily believe the Fed should quickly move to raise rates.