Big Banks Pass Fed's 2025 Stress Test With Ease—But Some Say It Was Too Easy

The Federal Reserve announced that all 22 major banks passed its 2025 stress test, indicating strong capital buffers even in a hypothetical recession. However, analysts criticized the test for being less rigorous than previous years, with milder economic assumptions. The test estimated $550 billion in losses but all banks remained above regulatory minimums. Notably, the test did not assess vulnerabilities to private credit markets, despite concerns about systemic risks. Major banks like JPMorgan and Goldman Sachs are now positioned to resume capital return programs, including dividends and buybacks.