Four large U.S. banks can’t survive another serious financial downturn. That warning, coming from the Federal Reserve.
FOX News Radio’s Jared Halpern has more from Washington:
The Fed says 15 of 19 major banks passed a so-called ‘stress test’. But four, including the nation’s third largest bank Citigroup, do not have enough capital to survive a serious financial hit.
Still, the Federal Reserve believes Citigroup, Ally, Sun Trust and Met Life are all in a much stronger position than immediately following the 2008 collapse.
The stress tests review bank balance sheets and determine if they could withstand a crisis that sends unemployment to 13%, cuts stock prices in half and drop home prices 21%.
In Washington, Jared Halpern, FOX News Radio.
