The Federal Reserve on Wednesday released the results of its annual stress test to see how America’s 31 largest banks would fare in a financial crisis. While the hypothetical recession showed that all banks were well protected against an actual recession, they fared worse on average than in last year’s test.
According to a Bank of America report out Thursday, the “worst hit” was Goldman Sachs, with a year-over-year increase of roughly 100 basis points in its stress capital buffer. Bank of America’s analysts said this implies Goldman is exceeding the minimum requirement for globally important banks by approximately 60 basis points, meaning the firm has less excess capital compared with similarly sized peers. Columbus-based Huntington Bank and New York–based Citigroup were among the best-performing.
