Federal Reserve's Stress Test Shows Large Banks Can Withstand Severe Recession

Reported about 11 hours ago

The Federal Reserve's annual stress test indicates that major U.S. banks, including JPMorgan Chase and Bank of America, are well-equipped to endure a severe recession without needing government support. The test assessed banks' resilience against a hypothetical economic downturn featuring a high unemployment rate and significant declines in stock and real estate values, revealing that their capital levels remain well above the required minimum. However, some critics argue that the current testing method may understate risks.

Source: YAHOO

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