America’s biggest banks are well positioned to survive a severe recession while continuing to lend to households and businesses, the Federal Reserve said Wednesday in its annual bank resilience test, commonly referred to as a stress test. However, banks could suffer higher losses, if a significant economic downturn were to hit now versus a year ago.
The biggest US banks proved to the Fed they would all be able to withstand a severe global recession, demonstrating strength while they push regulators to adjust a set of proposed capital rules.
After Capital One generated $8.5 billion in credit card balances from Walmart customers, the bank squandered an exclusive deal, opening up a competition for the valuable market.