HomeEconomy NewsCould bank stress tests push US back into recession?

Could bank stress tests push US back into recession?

The latest round of bank stress tests could actually do more harm than good to the fragile financial system - even pushing the US back into a recession, a prominent bank analyst believes.

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By CNBCTV18November 28, 2011, 11:31:17 AM IST IST (Updated)

Could bank stress tests push US back into recession?

The latest round of bank stress tests could actually do more harm than good to the fragile financial system - even pushing the US back into a recession, a prominent bank analyst believes.



Mandated by the Dodd-Frank regulations, the Federal Reserve's annual tests require that the largest banks be able to survive 13% unemployment, another 21% drop in home prices and a 52% plunge in the stock market.


Those are conditions that mimic not only the financial crisis conditions in 2008 but also on some levels

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