Federal Reserve says U.S. banks can withstand $708 billion in losses amid overhaul of capital rules

The Fed's annual bank stress test is occurring at a pivotal regulatory moment, but this year's results will not affect capital requirements. The change reduces the immediate policy impact relative to prior years, making the update more about the direction of bank regulation than near-term capital changes.

Analysis

The Fed's annual bank stress test is occurring at a pivotal regulatory moment, but this year's results will not affect capital requirements. The change reduces the immediate policy impact relative to prior years, making the update more about the direction of bank regulation than near-term capital changes.