Federal Reserve reveals new, tougher stress tests

federal reserve

The Federal Reserve has unveiled details of its 2014 Comprehensive Capital Analysis and Review (CCAR), stress tests that 30 banks will participate in next year. As in previous years, the Fed included a ‘severely adverse scenario' – which it stresses is a hypothetical situation, not a forecast – in which advanced economies suffer a deep recession, unemployment rockets and global stock markets crash. A total of 28 variables see a sharp deterioration. In the scenario, banks are