Fed's Latest Stress Test Determines Whether Big Banks Can Withstand A Global Financial Crisis

Can the largest lenders in the U.S. survive a major global financial crisis? The latest batch of Federal Reserve stress tests will decide.

Released last week and due April 5, the tests help determine how banks might weather an economic storm where the jobless rate jumps to 10% and corporate lending becomes difficult, Bloomberg reports. Banks that perform well may have more freedom to buy back stock and pay dividends to shareholders.

The Fed exempted most midsized and smaller banks from the most difficult portion of the test, aiming the exercise toward the largest lenders. In response to President Donald Trump’s order for a sweeping review of the Dodd-Frank Act, experts said there is uncertainty as to how these tests will be done in the future. [Bloomberg]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

UK Budget Risks Deterring Sovereign Wealth Funds From Real Estate

TPG, ACORE Raise Billions For Opportunistic CRE Funds

Newmark Cuts Earnings Outlook Despite Record Third Quarter

Battered Mortgage REIT Suspends Dividend To Preserve Cash

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Weil Gotshal Wind-Down Leaves 830K SF Hole In America's Office Market

Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss

Tyko Capital Sets New Record For Florida's Largest Construction Loan

Office Recovery Moving Faster Than Expected, CoStar Finds

How Microsoft, Coca-Cola And Amazon Are Adapting Their Offices For AI Age

CoStar To Acquire Aerial Imagery Company For $730M

BXP Execs See Better Returns In Building Offices Than Buying Them