In the worst economic scenario, the largest US banks will lose about $541 billion in total. Despite this, local credit institutions will still have the resources to cover the above losses. informs The British Financial Times newspaper (FT) refers to the annual stress test of the US Federal Reserve System (FRS).
This year, the stress test was conducted among the 23 largest US banks. The most stressful scenario is the article stating that unemployment in the US domestic market rose to 10%, commercial real estate prices fell 40%, housing prices fell 38%, and short-term interest rates fell to almost zero.
“The largest US banks would lose $541 billion in a hypothetical economic doomsday scenario, but they still have more than enough capital to cover the losses. <…> Of the 23 banks audited, Deutsche Bank’s US subsidiary was hit hardest, followed by UBS Americas. Among US-based banks, Goldman Sachs capital fell the most, followed by Morgan Stanley.
June 24, The Wall Street Journal (WSJ) reports the results of its own poll knowledgeableHe stressed that the risk of the US economy entering a recession is still high. Analysts estimate this probability at a record 44%.
previously in the USA discretion incumbent President Joe Biden’s chance for re-election in 2024 in the event of a prolonged recession.