Per Fed

The Federal Reserve is assuring the public regarding the performance of the top 23 banks, saying they are capable of withstanding major unemployment and stock market plunge. The agency says these large banks would handle a 45% stock market drop and 10% unemployment.

This came as Michael S. Barr, the Vice Chair for Supervision, gave a statement regarding the banking system. His comments described the banking system as "strong and resilient."

Barr: "Today's results confirm that the banking system remains strong and resilient... At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses."

The deductions came after the annual bank stress test, which revealed how all 23 top banks tested could sustain $541 billion in losses.

On March 19, it was reported that midsize banks requested the FDIC to insure all deposits for two years. The request came from the Mid-Size Bank Coalition of America (MBCA) and was made to federal regulators to request for extended insurance.

In May, it was reported that 22 banks reported unrealized losses of more than 50% of their capital.

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