show all 31 of the nation's largest banks could continue to lend in the event of a severe recession. The banks' balance sheets were tested against a hypothetical scenario where, among other factors, the unemployment rate reaches 10%, the stock market plummets 55%, and home prices sink 36%.
Now, the fed stress tests were mandated annually by law after the financial crisis for banks with $100 billion or more in assets.The hypothetical scenario envisions a severe global recession where unemployment spikes, 10% home prices plunged 36% and the stock market it plummets 55%.Yet, after covering losses, banks would still have capital left over equal to 9.9% of total assets weighted by risk.
The largest banks were able to absorb shocks no capital consequences for the exploratory portion though it will be used in the supervisory process for the nation's largest banks. After 7 years of working for Nvidia’s CEO Jensen Huang, the chipmaker's outgoing VP said that her boss taught her about the importance of first principles thinking, zero-billion dollar markets and speed-of-light execution.Dividend stocks like Fortis Inc can be great additions to a well-diversified portfolio. The post RRSP Wealth: 2 Great Dividend Stocks to Own for Total Returns appeared first on The Motley Fool Canada.