Largest US banks pass the Fed’s stress test
Scenario saw banks continue lending despite losses three times greater than those of 2008 crisis
The US Federal Reserve announced on June 28 that the 23 largest banks in the country passed its annual stress test.
The Fed’s hypothetical recession scenario projected an estimated collective loss of $541 billion for the banks. The loss rate, because of the scenario’s focus on commercial real estate, was three times that of the 2008 financial crisis.
Despite this, large banks “would still be able to continue lending”, the board said on June 28.
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