Fed Releases Global Shock Stress Test Scenario for Big Banks
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The Federal Reserve released “adverse and severely adverse” global financial market scenarios that will be used to gauge the strength of six large banks, as part of the central bank’s annual stress tests that will be finalized in March.
Six banks -- Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. -- will have their portfolios tested to measure how they would do if the economy and financial markets experienced a severe downturn. The scenarios for the economy were released in November.