Capital One, Discover loan portfolios hardest hit in Fed stress test
Simulated losses wipe out more than 1/6th of respective exposures
Loan books at Capital One and Discover took the worst beating in this year’s Dodd-Frank Act stress test (DFAST), with the US Federal Reserve’s simulation wiping out just over one-sixth of their exposures.
Throughout the nine-quarter recession scenario, the two banks accumulated loan losses of $52.9 billion and $24 billion respectively, equivalent to 16.5% and 18.7% of their loans as of end-2023
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