FT - US Fed Stress Test results

Big banks (USA) pass first round of Fed’s stress test

The US banking system has the financial strength to withstand an economic meltdown — and negative US interest rates — after improving defences since the 2008 crisis, regulators said on Thursday.
The Federal Reserve released the first-round results of its annual stress tests, which assess how well banks would cope with simulated shocks to the economy and financial markets.
Each of the 33 banks tested survived the toughest scenario designed by the Fed, in which stock prices drop about 50 per cent, unemployment reaches 10 per cent and gross domestic product declines sharply.
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