Nation’s Biggest Banks Would All Withstand Recession, Fed Says
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Janet Yellen, the Federal Reserve chairwoman. While federal officials said that this year’s results show that, by most measures, the nation’s financial system is adequately capitalized, the banks are not out of the woods.CreditCarlos Barria/Reuters
The nation’s biggest banks have all built up big enough buffers to weather a severe recession in decent shape, United States regulators said on Thursday.
The Federal Reserve looked at how the country’s 33 largest banks would do in a recession with sustained high unemployment and negative interest rates. It found that the big banks would all suffer major losses — $526 billion in total.
Yet even with those losses, regulators said, all of the big banks would remain in relatively good financial health — and well above minimum regulatory requirements — as a result of the big cushions of shareholder money they have stockpiled in the last few years…
Nation’s Biggest Banks Would All Withstand Recession, Fed Says
