Federal Reserve says U.S. banks can withstand $708 billion in losses amid overhaul of capital rules (opens original article in a new tab)

The Federal Reserve's stress test indicates major U.S. banks can withstand $708 billion in losses during a severe recession, with all 32 examined banks meeting capital requirements. The results won't affect current capital requirements as the Fed reworks stress test methodology until 2027.

• Federal Reserve's stress test shows top U.S. banks can absorb $708 billion in losses during severe recession
• 32 banks maintained capital requirements under hypothetical scenario with 10% unemployment and 39% drop in commercial real estate prices
• Fed will keep stress test buffers unchanged until 2027 while reworking methodology, affecting future capital requirements