Major US banks can withstand severe crisis: Fed

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Jun 24, 2019 06:00 am

WASHINGTON: Major banks operating in the United States would be able to withstand a severe global economic crisis with funds to spare, the Federal Reserve said on Friday.

The Fed announced the results of its annual bank stress tests, showing the 18 largest financial institutions would suffer losses but still have enough of a capital buffer to continue operating.

"The results confirm that our financial system remains resilient," Fed vice-chairman Randal Quarles said.

During the 2008 financial crisis, the US government had to spend billions of dollars to bail out banks.

"The nation's largest banks are significantly stronger than before the crisis and would be well-positioned to support the economy even after a severe shock," Mr Quarles said. - AFP