WASHINGTON
The U.S. Federal Reserve has carried out a stress test to gauge the financial health of the country's banks with 29 of 30 proving strong enough to withstand a severe economic meltdown without bailout from the government.
According to the hypothetical recession stress test, the U.S.' largest banks have enough capital to continue lending and although some came up weaker than expected only Utah-based Zions did not meet the minimum requirements.
It is estimated that the banks would lose up to $501 billion dollars in the scenario which included a harsh recession and an unemployment rate of 11 percent plus.
The Fed's annual stress tests, which began in 2008 as the financial meltdown turned into a global recession, are done to ensure the country's large banks can withstand any economic turmoil and to make sure there is no repeat of 2007-2009 which saw the collapse of several institutions including Lehman Brothers.
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