Fed: US banks have money to withstand a severe recession

The results of the annual stress tests conducted by the Federal Reserve shows the 34 largest banks in the US have money on hand to withstand a severe recession. 

The Federal Reserve tested to see how banks with USD 50 billion or more would respond in the event of a global recession, if unemployment increased to 10% and property values tanked.  In this scenario, banks would suffer combined losses of nearly USD 500 billion. 

However, they have enough capital to absorb the blow, said the Fed and added, “Since 2009, the 34 firms have added more than USD 750bn in common equity capital”. 

May believe the upbeat results prove room to Trump administration for scaling back post crisis rules