Federal Reserve Releases Wall Street Bank Stress-Test Plans (2)

The Federal Reserve released hypothetical scenarios for its annual stress tests, which seek to evaluate the resilience of big banks and ensure they can keep lending even in a severe recession.

This year, 22 banks will be tested against a global recession with heightened stress in both commercial and residential real estate markets, in addition to corporate debt markets, the central bank said in a statement Wednesday.

Of the banks set to be tested, only eight with large trading operations will face a global market shock component.

The seal of the US Federal Reserve Board of Governors

Photographer: Samuel Corum/Bloomberg

In the 2025 stress-test scenario, the US unemployment rate would rise almost ...