Are the US banks doing ok after the recent Fed stress test? (09Jul2023)
(All) 23 banks passed the Fed’s stress test As per the news screenshot above, all 23 banks have survived the recent stress test by The Federal Reserve. Here are news extracts from this article dated 29 Jun 2023: All 23 US banks that participated in a new Federal Reserve stress test would be able to withstand a severe global recession, demonstrating the strength of the biggest financial institutions at a time when the banking industry still is on uncertain ground. Results released by the Fed Wednesday show that these banks would have enough capital on hand to absorb losses and continue lending even if unemployment were to hit 10% and the stock market were to plunge 45%. Their projected losses would amount to $541 billion under that hypothetical scenario. This year the Fed examined how 23 banks would fare under a severe global recession that included severe stress in commercial real estate. In such a scenario unemployment spikes to 10%, home prices and commercial real e...