Banks Could Weather Even Extreme Economic Tumult, Fed Finds

Original Article:

Source: Link

A severe spike in inflation. A plummet in the value of the dollar. The collapse of their biggest clients. The largest banks in America could survive even those dire economic scenarios, according to analysis released by the Federal Reserve on Wednesday. The results are particularly noteworthy, because in addition to the Fed’s annual bank stress tests, this year, for the first time, the industry’s main regulator put big lenders through an enhanced hypothetical gantlet that mirrored and amplified some news events — including the unwinding of an investment fund that ultimately contributed to the fall of Swiss banking giant Credit Suisse. The industry cleared the higher bars, with as close to a clean bill of health as its leaders might have hoped.