Against Coronavirus, the Fed’s Banking Stress Test Doesn’t Look So Bad

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Against Coronavirus, the Fed’s Banking Stress Test Doesn’t Look So Bad
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Bankers wonder if regulatory stress tests are even worth it this year as the coronavirus pandemic decimates the economy

Specialized teams inside the nation’s biggest banks are hunkered down, working out how they would handle a nightmare economic scenario the Federal Reserve dreamed up. Turns out, reality is worse.

The annual stress tests for the biggest banks, due April 6, are meant to gauge if banks would survive a hypothetical recession that sends the stock market plunging, oil into a tailspin, loan defaults rising and unemployment to society-shattering highs.

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