ML-Implode News - Biggest U.S. Banks Seen Weathering Severe Stress in Fed Test

The Federal Reserve's stress tests of big banks found all 33 have enough capital to withstand a severe economic shock, though Morgan Stanley trailed the rest of Wall Street in a key measure of leverage.
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This year, the hypothetical scenarios were seen as especially tough, calling for banks to assume -- in the most severe case -- that U.S. unemployment doubled to 10 percent while the markets tumbled and Treasury yields went negative. The banks would have experienced resulting loan losses of $385 billion, according to the Fed.

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Now that banks have initial results, they can revise capital plans sent to regulators before CCAR comes out. Those who think their capital-distribution strategies were too ambitious can send a new version, as JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley did last year.

Bank of America -- which faced significant pressure to overcome its stumbling in the past two exams -- cleared the capital minimums for this initial test, exceeding last year's marks in all categories. The Fed had put the Charlotte, North Carolina-based lender on notice that it needed to get better this year. Chief Executive Officer Brian Moynihan responded by allocating more than $100 million to overhaul controls and he promoted veteran human-resources executive Andrea Smith to chief administrative officer, overseeing the stress-test submission.

We're not sure unemployment going to 10% is really all that "severe"... but the article is largely detail-free...

Relevant:

Biggest U.S. Banks Seen Weathering Severe Stress in Fed Test