Fed stress tests reveal potential for losses of $460 billion


The US Federal Reserve has published the results of its 2013 Dodd-Frank stress testing exercise, finding that under the "severely adverse scenario", banks would make substantial losses and could even fall below the minimum acceptable capital levels.

A total of 18 bank holding companies were tested in the exercise, being subjected to the severely adverse scenario devised by the Fed. This was based on a "deep recession" in the US, Europe and Japan, a drop in equity prices of more than 50%, and a s

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