Discover, Capital One loans ravaged by Fed stress test
Credit card losses especially pronounced among regional US lenders
Discover Financial Services’ loan book took the biggest beating under the Federal Reserve’s latest Dodd-Frank Act stress test (DFAST), with a projected loss rate of 17%, equal to $16.3 billion, when subjected to the regulator’s severely adverse scenario.
The aggregate loan-loss rate across the 33 participating banks was 6.3% over the nine quarter horizon of the simulation. Among top US lenders –
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