Reported 9 months ago
All 31 large US banks that participated in the Federal Reserve stress test have shown the ability to withstand a severe global recession, with ample capital to absorb losses and continue lending. Results revealed that the banks collectively could handle a scenario where US unemployment rises to 10%, commercial real estate prices drop 40%, and the stock market plunges 55%. The banks, including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley, all maintained capital buffers nearly double the Fed's minimum requirement of 4.5%. There were signs of some weaknesses, but overall, the banks demonstrated resilience in the face of extreme economic stress.
Source: YAHOO