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