Big banks all pass the Federal Reserve’s stress tests, but the tests were less vigorous this year

From Yahoo Finance: 2025-06-27 16:34:00

All major banks passed the Federal Reserve’s annual stress tests, showing resilience to potential financial crises. The scenario tested in 2025 was less severe than in 2024, with less damage projected to bank balance sheets. The Fed chose a less vigorous test due to weakened global economy and previous test volatility. They did not heavily test private equity exposure, omitting private credit exposure entirely. The 22 banks tested, including JPMorgan Chase and Bank of America, can now issue dividends and buy back shares. Next week, they will announce their dividend plans.



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