Banks would lose $541 billion in ‘hard landing’ contingency: Fed ...Middle East

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Banks would lose $541 billion in ‘hard landing’ contingency: Fed
The Federal Reserve said Thursday that banks are well capitalized enough to endure a severe recession but stand to lose $541 billion if the economy heads south. The findings came from the Fed’s annual stress test of the banking sector, which is based on major hypothetical declines in economic conditions, including a 40-percent drop in real estate prices and widespread office vacancies. “The $541 billion in total projected losses includes over $100 billion in losses from commercial real estate and residential mortgages,” Fed officials found, noting the loss would represent a 2.3-percentage point decline in total capital. Bank of America would lose $54 billion, Capital One would lo

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