Five banks lowballed loan losses in latest DFAST

Banks project $23bn smaller hit to loan portfolios, with Wells Fargo and Citi the most off-target

Five of the US’s eight global systemically important banks (G-Sibs) lowballed the impact on their loan books in the event of a severe recession, with their internal models generating $23.3 billion in fewer loan losses than the Federal Reserve’s own assessment.

Through the nine-quarter-long severely adverse scenario – from end-2022 to March 2025 – drawn up by the Fed in this year’s stress test, Wells Fargo calculated it would have to book a cumulative $42.5 billion in loan and lease losses –

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here