07:20 AM EDT, 07/15/2024 (MT Newswires) -- Goldman Sachs ( GS ) has appealed to the US Federal Reserve regarding its recent "stress test" results, which will require the Wall Street firm to hold more capital, the Financial Times reported on Sunday, citing people familiar with the matter.

The "stress test" results determined that the firm could face more than $40 billion in loan losses under severe economic scenarios, requiring the bank to hold higher capital reserves relative to its assets, according to the report.

The report added that despite Goldman's efforts to scale back on riskier investments, the outcome would mandate capital holdings beyond analysts' expectations.

The appeal process starts with submitting a letter to the Fed specifying the areas of disagreement. The Fed typically discloses in August the names of any banks that appealed against their "stress test" result and whether they were successful, the Financial Times said.

Goldman Sachs ( GS ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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