Fed stress test: JP Morgan would bear brunt of losses
Dealer’s giant loan portfolio hit the hardest among 23 participating banks
JP Morgan’s loan portfolio would be hit the hardest under a severe recession, according to the results of this year’s Federal Reserve Dodd-Frank Act Stress Test. Bank of America, Wells Fargo and Citi would be the next worst hit.
JPM’s losses as projected under the DFAST’s severely adverse scenario, which saw real US GDP drop as much as 4% below end-2020 levels and unemployment peak at 10.75%, would amount to $84 billion, representing 17.7% of total losses across the 23 banks subject to the test
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