US banks ace Fed's annual health checks despite recent turmoil

Citizens Financial

28/06/2023 21:30

WASHINGTON, June 28 (Reuters) - Big U.S. banks sailed
through the Federal Reserve's annual health check on Wednesday,
in a vote of confidence for the sector that is still recovering
from turmoil earlier this year and faces an uncertain economic
outlook.
    The Fed's "stress test" exercise showed lenders, including
JPMorgan Chase  JPM.N , Bank of America  BAC.N , Citigroup
 C.N , Wells Fargo  WFC.N , Morgan Stanley  MS.N  and Goldman
Sachs  GS.N , have enough capital to weather a severe economic
slump, paving the way for them to issue share buybacks and
dividends. 
    The 23 banks tested, which all have more than $100 billion
in assets each, would suffer a combined $541 billion in losses
under the Fed's severe downturn scenario, but would still have
over twice the amount of capital required under its rules.
    

 (Reporting by Pete Schroeder; editing by Michelle Price and
Deepa Babington)
 ((Pete.Schroeder@thomsonreuters.com; 202-310-5485;))