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Fed finalizes revised standard for grading big banks

BY Reuters | ECONOMIC | 11/05/25 05:03 PM EST

WASHINGTON (Reuters) -The U.S. Federal Reserve announced on Wednesday it had finalized a revised framework for how it grades large banks, which will make it easier for firms to maintain a passing grade.

The new framework is similar to a proposal first floated by the Fed in July, which will make it easier for banks to obtain a "well managed" rating from bank examiners, by only downgrading them due to deficiencies across multiple categories instead of just one under the prior standard.

(Reporting by Pete Schroeder; Editing by Chris Reese)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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