US banks suffer steeper losses, but retain large cushions in annual Fed health check

WASHINGTON, June 26 (Reuters) – The biggest U.S. banks would have enough capital to withstand severe economic and market turmoil, the Federal Reserve’s annual “stress test” exercise showed on Wednesday, but firms faced steeper hypothetical losses this year due to riskier portfolios.

The exercise found 31 big banks would weather a spike in the jobless rate, severe market volatility, and dives in the residential and commercial mortgage markets and still retain enough capital to continue lending.