A JPMorgan office building is shown, Monday, May 14, 2012, in New York. JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money. (AP Photo/Mark Lennihan)
WASHINGTON (AP) -- The Federal Reserve says the nation's biggest banks will be tested next year on their ability to survive not only a severe U.S. recession but also a global downturn.
The latest round of "stress tests" will test how the banks would handle recessions in Europe and Japan and severe slowdowns in other Asian countries including China.
Under the Fed's most severe scenario, the United States would undergo a recession in which unemployment would reach nearly 12 percent, stocks would lose half their value and home prices would plunge 20 percent.
The nation's 19 biggest banks must submit reports on how they would fare under various scenarios. The central bank will release the results by late March.
The Fed has conducted stress tests of the banks every year since 2009.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.