Federal Reserve Set To Release Annual Bank Stress Test Results: Here's What To Expect On Wednesday
Portfolio Pulse from Piero Cingari
The Federal Reserve is set to release the results of its annual stress test on Wednesday. The test is designed to determine if the nation’s largest banks can withstand a severe economic downturn. This year's scenario includes a steeper rise in unemployment and sharper decline in home prices. Despite the more severe scenarios, all 23 banks undergoing the tests are expected to pass due to their strong capitalization. However, the adverse scenario could result in steeper loan losses for banks due to their commercial real estate exposure, leading the Fed to impose tougher capital requirements on some banks. The stocks of major US banks such as JPMorgan Chase & Co., Bank of America Corp, Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group Inc., and Morgan Stanley could be affected.
June 28, 2023 | 3:20 pm
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Bank of America Corp could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for Bank of America Corp, potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Citigroup Inc. could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for Citigroup Inc., potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Goldman Sachs Group Inc. could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for Goldman Sachs Group Inc., potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
JPMorgan Chase & Co. could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for JPMorgan Chase & Co., potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Morgan Stanley could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for Morgan Stanley, potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Wells Fargo & Co. could be affected by the Federal Reserve's stress tests.
The Federal Reserve's stress tests could lead to tougher capital requirements for Wells Fargo & Co., potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80