Can the big banks survive another economic situation like the crisis of late 2008? That’s what federal reserve regulators want to find out. They had more than 30 banks participate in new stress tests after the close of business on Tuesday last week. These are the largest banks in the country, all with assets of $50 billion or more.
The banks are expected to have plans in place for how to have or arrange for sufficient capital to survive a major shock. More specifically regulators will look at whether the banks will be able to continue consumer and business lending even when facing a crisis situation. But the biggest of the big will be tested even more severely. According to an article on CNN.com;
Six banks with large trading operations will have an even higher hurdle to clear, simulating a more severe global financial meltdown. Those banks are Bank of America, Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley and Wells Fargo.
…The Fed issued specific instructions that vary depending on » Read more: New Bank Stress Tests
