Big banks are on the rise after passing their stress tests (JPM, GS, CS, MS, ALLY, BAC, KEY, WFC)

pulse

June 23, 2017 5:32 PM

The big banks all passed their stress tests with flying colors.

Most of the big banks are on the rise after passing the Federal Reserve's stress tests Thursday.

After the markets closed Thursday, the big banks released the effect a hypothetical extreme recession would have on their balance sheets.

The banks all passed the capital requirements required by the tests, even the most stringent test which involved a hypothetical doubling of the unemployment rate.

The banks improved versus last year's results. Big banks would suffer $383 billion in loan losses in the most extreme scenario, compared to $385 billion last year.

These tests were implemented in the aftermath of the financial crisis to ensure the banks would be able to survive a similar future crisis and continue to lend even in tough times.

Even with billions of losses, the banks' amount of high-quality capital would cover 9.2% of their risk-weighted assets, an improvement over last year's 8.4%. The tests require banks to meet a 4.5% threshold in order to pass.

After the banks released results of the stress tests, most of their shares began rising. Here is a list of some of the biggest names...