Banks face the stress test of a lifetime
By Courtenay Brown
The Fed says several banks may not fare well if there’s a U- or W-shaped economic recovery. That’s why it says it’s cracking down on bank dividends and share buybacks — in a way never before seen since annual stress tests were implemented after the 2008 financial crisis. …The bottom line: “The banks, while proving themselves remarkably resilient because of their capital reserves, are still under enormous stress. Fundamentally banks are the fulcrum on which the macroeconomy functions,” Karen Petrou, co-founder of Federal Financial Analytics, an advisory company, tells Axios.