Federal Reserve Bank: 18 largest banks operating in the US pass first step of annual stress test

Author: Greg Michalowski | Category: News

Federal Reserve Stess test shows passing grades

  • The 18 largest banks operating in the US past the 1st step of the Fed's annual stress test
  • Large banks including J.P. Morgan, Chase, Citigroup, Wells Fargo, Bank of America, Goldman Sachs, can all weather severe economic downturns
  • All banks maintain capital above regulations minimum in tests crisis
  • Goldman, Morgan Stanley improve ratios after stumble in 2018
  • Exam sees 18 banks posting 115 billion pretax loss in two-year downturn
The stress test scenario was based on a severe recession, where US unemployment rates rise to 10%, 10-year treasury yields fall and there is an appreciation of the US dollar
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