U.S. Banks Face New Fed Stress Tests

The video discusses the Fed's stress tests for banks, focusing on the Dodd-Frank Act stress test (DFAST) and the Comprehensive Capital Analysis and Review (CCAR). It highlights the potential impacts of a disaster scenario on equity prices and unemployment, reviews last year's results, and outlines expectations for upcoming results. The video also explains how banks can adjust their numbers if they don't perform well initially, with a focus on Morgan Stanley's past performance and expectations for foreign subsidiaries like Deutsche Bank and Banco Santander.

What is the expected outcome for the 34 banks undergoing the Fed stress tests?

How much could equity prices potentially plunge in a disaster scenario?

What was the leverage ratio for Morgan Stanley during last year's stress test?

What is the significance of the Dodd Frank Act in relation to the stress tests?

What is the expected outcome for most banks in the upcoming CCAR results?