The Federal Reserve announced on Wednesday that the nation’s largest banks are sufficiently capitalized to navigate a severe economic recession, projecting they could withstand combined losses of $708 billion. This annual stress test, conducted in Washington D.C., evaluated 31 of the largest U.S. financial institutions under a hypothetical scenario involving a sharp spike in unemployment and a significant drop in commercial real estate values.
The Context of Regulatory Reform
This year’s assessment arrives at a sensitive juncture for the American financial system. Regulators are currently debating the implementation of the
