Deutsche Bank U.S. Fails Stress Test

The video discusses the Federal Reserve's annual stress test results, highlighting how banks would handle a severe economic downturn. Only Deutsche Bank's US unit failed, while others had to adjust their capital plans. Major banks like JP Morgan and Goldman Sachs scaled back payout plans to pass the tests. Analysts expect a 25% increase in dividends and share buybacks from the largest banks, totaling $30 billion more than last year.

What was the outcome of the Federal Reserve's stress test for Deutsche Bank's US unit?

• It passed with flying colors.

• It failed the test.

• It was not included in the test.

• It received a conditional pass.

Why did some banks have to modify their capital plans according to the Federal Reserve?

• To expand their international operations.

• To comply with new tax regulations.

• To increase their market share.

• To ensure sufficient capital during a crisis.

Which banks were mentioned as needing to adjust their payout plans?

• JP Morgan and Goldman Sachs

• Bank of America and Citibank

• Wells Fargo and HSBC

• Barclays and Credit Suisse

By what percentage are the 25 largest banks expected to increase their spending on dividends and share buybacks?

• 10%

• 15%

• 25%

• 30%

How much more are the largest banks expected to spend on dividends and share buybacks compared to last year?

• $40 billion

• $30 billion

• $20 billion

• $10 billion