US banks would lose $700bn in economic crash, Fed stress tests find

Federal Reserve stress tests reveal that the 32 largest US banks all received passing grades, demonstrating their ability to absorb between $550bn and $700bn in losses during a severe economic crash. These results bolster confidence in overall banking stability and may reduce systemic risk and market volatility during future downturns. The findings confirm that the country's biggest lenders maintain sufficient capital to withstand a major financial crisis without compromising the broader financial system's integrity.