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All 32 of the nation’s biggest banks clear the Fed’s annual ‘stress test’
The banks would absorb $708 billion in losses and still keep capital above required levels, the Fed said.
- The Federal Reserve announced Wednesday that all 32 major Banks passed the annual 'stress test,' indicating the banking system would remain healthy even if a major economic contraction occurred.
- Mandated by the Dodd-Frank Act following the 2008 financial crisis, these annual evaluations measure whether capital cushions remain healthy despite hundreds of billions in projected losses.
- In the 2026 scenario, Housing prices would fall 30% and the stock market would plunge 58%, while unemployment would rise from 5.5% to 10% and the economy would contract 4.6%.
- Shortly after the announcement, JPMorgan Chase increased its quarterly dividend to $1.65 a share from $1.50 a share and announced an additional $50 billion stock buyback.
- Banks must maintain a common equity Tier 1 capital ratio above 4.5%, as poor performance on these tests could force higher requirements, limiting their ability to pay dividends or repurchase stock.
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The largest banks in the U.S. have enough capital to continue granting loans to families and companies, even in the face of the most adverse economic conditions, said the Federal Reserve (Fed, the U.S. central bank) after performing its annual stress test. Exclusive material for subscribers. To have full access, access the link of the subject and register.
·Brazil
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Associated Press News+11 Reposted by 11 other sources
All 32 of the nation's biggest banks clear the Fed's annual 'stress test'
The Federal Reserve says that all 32 of the nation's biggest banks have passed its annual stress test.
·New York, United States
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In the annual stress test, a crisis scenario with a global recession was conducted, and the result shows that 32 of the leading US money houses are well positioned.
·Düsseldorf, Germany
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Coverage Details
Total News Sources19
Leaning Left3Leaning Right6Center7Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 19%
C 44%
R 37%
Factuality
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