Fed Stress Test Shows Problems In Big Banks

The Federal Reserve stress test, designed to rigorously analyze the United States’ biggest financial institutions, has shown that the country’s major banks are not up to scratch, according to a release from the central bank today. According to a preliminary report each of the eighteen institutions tested were not up to standard in at least one area of the test. According to a Bloomberg piece on the Federal Reserve report, the banks fell short of the leading practice standards in at least one of five categories the test deems essential to capital management and risk assessment. Of particular concern, according to…