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 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 collapse of the mortgage securities market essentially froze the financial system and the US government had to spend billions to bail out banks.
