The largest US banks have federal reserve stress tests

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The largest US largest banks passed the annual tests of the federal reserves, they can withstand future economic and market crisis, and open the door for the purchase and sale of dividends and shares.

Fed, under the “serious negative” scenario, the unemployment is under the scenario that unemployment has increased by 10 percent ATMIn particular, JPMorgan Chase, Goldman Sachs and Bank of America will lose more than $ 500 billion.

However, they will remain good in a smaller value and the required regulatory standards than in recent years.

The theoretical decline used by the Fed to test the banks to test the Fed, stressed how the regulators have more bank friendly approaches because last year’s presidential election.

“Large banks are well capitalized and remain strong to achieve heavy results,” said Michelle Bowman, Vice-Chair for Fed’s control.

Fedin results “Stress tests“The banks that provide a critical buffer to absorb the damage will be used to calculate the minimum capital level needed with a risky professional.

The tests will be further placed after the tests, the tests, the Fed’s main bank lobbying group will be further placed. The Central Bank said that the training was earlier this year to reduce the exercise in the early year, and the exercise is more transparent and over the past two years.

Banks should wait until Tuesday will provide an update about what new capital will be required. After fed stress tests, they often develop dividends and sharing plans.

Fed, this year’s stress test tests are the total pap of banks, 1.8 percentage points against losses – a smaller drop in recent years and last year’s exercise will fall below 2.8 percent of the 2.8 percent.

However, the Fed said that this was expected to calculate the capital requirements of banks on the basis of an extremely average proposal in the coming weeks. This will increase the capital by reaching 2.3 percent. Bowman said the change was “to solve the extreme variability in the results of the stress test and the relevant capital requirements.”

According to the theoretical stress, the United States was a US operation, which lends the largest fall in the capital, under the average results of the past two tests. The next largest waterfall was in Switzerland’s UBS and Canadian RBC’s subsidiaries.

This year, US GDP decreased by 7.8 percent a year in a serious negative scenario, 40.9 percent of unemployment increased by 5.9 percent and inflation by 1.3 percent. Home prices fell by 33 percent and trade property prices decreased by 30 percent.

Although this is one of the most extreme recipes in history, it is more softer than the FED last year. Theoretical market crash – 50 percent of stock prices and high-income bonds sold sharply – was less severe than last year’s exercise.

Fed said that banks benefit from higher profitability. Added that “how these reports are measured to better align the features of these expositions”, the private capital included low hypothetical losses.

To lighten the regulatory burden to support the growth and investment support from Trump under pressure, Fed said that many plans to work again for banks.

This week, the Fed and other two main bank guards said they plan to hit the advanced additional goal rate to be a capital asset to the total assets of the largest banks.