WASHINGTON: The largest US financial institutions have enough armor to withstand the turmoil of a major and prolonged national and global recession, the US Federal Reserve said here the other day.
The Fed’s annual “stress tests” show that the 33 largest financial institutions — including JPMorgan Chase & Co, Citigroup Inc, Bank of America Corp and Wells Fargo & Co — all hold more capital than at any time since the 2008 financial crisis.
They also hold enough capital that, even if faced with billions of dollars in losses from loans as a result of an economic crisis, they would continue to function, the Fed said.
