All 32 big US banks pass Fed stress test despite $708B loss scenario in recession

The Federal Reserve's annual stress test shows all 32 major US banks maintain capital above minimum requirements even under a severe recession scenario causing $708 billion in losses. The test assumed a 10% unemployment rate, a 39% drop in commercial real estate prices, and a 30% decline in home prices. The banks' common equity tier 1 ratio fell only 1.6 percentage points, indicating strong resilience. The Fed will keep stress test capital buffers unchanged until 2027 while revising the methodology, meaning these results won't affect capital requirements for now.