What to Watch For in the Fed's Bank Stress Tests

The video discusses the Federal Reserve's stress tests, which evaluate banks' ability to withstand economic downturns through various scenarios, including severe recessions. It highlights the importance of these tests in maintaining financial stability and credibility, especially after the financial crisis. The discussion covers the impact on banks' capital, dividends, and systemic risk, as well as the potential effects of negative interest rates.

What was the significance of the stress tests during the financial crisis?

What are the potential consequences of negative interest rates for banks?