Federal Reserve’s New Stress Tests For Banks

Which financial institution will be able to weather a 5% decline in GDP, 12% unemployment and a decimated stock market? And they didn’t even mention a superstorm.

The Federal Reserve has released a new series of stress tests, designed to determine whether the nation’s banks can weather another economic storm. The three tests range from mild to calamitous, with the worst-case scenario seeing the Eurozone plunge into recession (er, hang on, isn’t it already there?) and a slowdown in China that spreads to neighbouring countries.


The tests are pretty much the same as 2011’s stress tests, bar the Asian situation.

About the author

My writing career has taken me all round the houses over the past decade and a half--from grumpy teens and hungover rock bands in the U.K., where I was born, via celebrity interviews, health, tech and fashion in Madrid and Paris, before returning to London, where I now live. For the past five years I've been writing about technology and innovation for U.S.