Wall Street banks have enough cash on hand to keep the Fed happy — this year, at least.
The 33 banks met or exceeded regulators' required capital cushions they would need to offset losses, according to the Federal Reserve, which on Thursday released the first portion of its annual stress test results.
Banks had to project greater losses this time around, including $113 billion in trading losses for the eight biggest firms.
The tests require banks to calculate how their holdings would fare in the event of various scenarios, including rising unemployment and a "severe global recession." They're required to apply those events to their holdings, testing whether their balance sheets would stand up to another economic crisis. The Federal Reserve began administering the tests in the wake of the global financial crisis, which began to gain momentum in 2007, and part of its plans include tweaking tests annually to ensure that individual Wall Street firms can weather deteriorating credit scenarios and market turbulence.