Yesterday the 23 big banks subject to the stress tests all passed
Fed’s official stress tests are a public exercise designed to make sure — and tell everyone — that the banking system could survive another 2008.
Here are the Fed’s press release and the full results.
One of the banks that passed is the US arm of Credit Suisse Group AG, which survived the Fed’s hypothetical stress scenario just fine but which vanished due to the stress of real life.
Matt Levine Bloomberg 29 juni 2023
https://www.bloomberg.com/opinion/articles/2023-06-29/the-big-banks-aren-t-stressed
Here are the Fed’s press release
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230628a.htm
and the full results.
https://www.federalreserve.gov/publications/files/2023-dfast-results-20230628.pdf
The Federal Reserve gave the biggest U.S. banks a clean bill of health
in its annual stress test, saying they would be able to continue lending to households and businesses even in a severe recession.
This year’s stress test measured the 34 biggest banks’ ability to maintain strong capital levels in a hypothetical recession marked by sharply higher unemployment and a steep decline in stock prices.
WSJ 23 June 2023
BofA has $370bn in cash and is not facing any SVB-like liquidity crunch.
Englund: Bank of America $100bn loss after big bet in bond market (englundmacro.blogspot.com)
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