Which Banks Won -- and Lost -- the Fed's Stress Test?

Published on:
14 March 2012 at 06:49 a.m. ET

Written by: Mike Bevel –

http://www.insidearm.com/news/00009756-which-banks-won-and-lost-the-feds-stress-/

As we mentioned yesterday, the Fed recently put 19 of the nation’s largest banks through a stress test, seeing how they would respond to a 13 percent jobless rate, a 50-percent drop in stocks, a 21-percent decline in housing prices and a significant contraction of other major world economies.

The results are in, and it’s essentially mostly good news: 15 of the 19 passed. Those banks will maintain a Tier 1 common equity ratio above 5 percent in a severe economic downturn.

Here are the four that didn’t pass:

MetLife
Citigroup
SunTrust
Ally Financial

And here’s the full list, ranked from best to worst: