By Simone Del Rosario (Business Correspondent), Brent Jabbour (Lead Producer), Emma Stoltzfus (Video Editor)
Doctors use stress tests to determine how well the heart is working when the pump is stronger than normal. The Federal Reserve is doing the same for the banks and this year's health results will be released on Wednesday, June 26, after the markets close.
After the 2008 financial crisis, the Fed decided it was a good idea to test how banks would respond to a severe global recession. Now the Fed conducts these stress tests on the nation's largest banks every year.
In this year's fictional scenario, the unemployment rate peaks at 10%, the level reached during the Great Recession. Housing prices fall 36% and commercial real estate prices fall 40%. The largest banks are also subject to hypothetical shocks in global markets. In total, the Fed has stress tested 32 banks this year.
https://san.com/cc/how-will-banks-hold-up-against-stress-test-that-mimics-2008-financial-crisis/
#QIReek
#DanielleDiMartinoBooth
#ResearchRevolution
#straightarrownews
Subscribe to Youtube: https://www.youtube.com/c/DanielleDiMartinoBoothQI
Subscribe to QI Research: https://qiresearch.com/
Subscribe to The Daily Feather: https://dimartinobooth.substack.com
Follow Danielle via Twitter: https://twitter.com/DiMartinoBooth
Please take the opportunity to connect and share this video with your friends and family if you find it useful.
No Comments