NEW YORK – The Federal Reserve says the U.S.'s largest financial banks have enough capital to withstand the turmoil of a major U.S. and global recession.
The results of the Fed's annual "stress tests" show that the 33 largest financial institutions, including JPMorgan Chase, Citigroup, Bank of America and Wells Fargo, all hold more capital than they did the year before. They also hold enough capital that, even if faced with billions of dollars in losses from loans as a result of an economic crisis, they would continue to function.
The stress tests were created in the wake of the financial crisis and Great Recession. This is the sixth round of stress tests the Fed has done.