The U.S.'s 18 largest and most complex banks passed the Federal Reserve's Dodd-Frank Act Stress Tests (DFAST).
The Fed said the banks have strong capital levels that would allow them to stay well above their minimum requirements after being tested against a severe hypothetical recession.
The most severe hypothetical scenario projects $410B in total losses for the participating bank holding companies.
This scenario featured a global recession with the U.S. unemployment rate rising by more than 6 percentage points to 10%, accompanied by a large decline in real estate prices and elevated stress in corporate loan markets.
"The results confirm that our financial system remains resilient," Vice Chairman Randal K. Quarles said. "The nation's largest banks are significantly stronger than before the crisis and would be well-positioned to support the economy even after a severe shock."
The banks subject to the stress tests are: Bank of America (NYSE:BAC), Bank of New York Mellon (NYSE:BK), Barclays US (NYSE:BCS), Capital One Financial (NYSE:COF), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), DB USA (NYSE:DB), Goldman Sachs (NYSE:GS), HSBC (NYSE:HSBC) North America, JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS), Northern Trust (NASDAQ:NTRS), PNC Financial (NYSE:PNC), State Street (NYSE:STT), TD Group (NYSE:TD), UBS (NYSE:UBS) Americas, U.S. Bancorp (NYSE:USB), and Wells Fargo (NYSE:WFC).
The second part of the Comprehensive Capital Analysis and Review, which evaluates planned capital distributions such as dividend payments and share repurchases, will be released on Thursday, June 27 at 4:30 PM ET.
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