The Wall Street Journal Fri, June 26, 2020 reports Federal Reserve writedown estimations after it conducts stress tests on leading banks. It orders banks to cap dividends and suspend share buy backs.
We contrast June, 2020 write down estimations with reconstructed numbers from October 2008 estimations. Federal Reserve stress tests June 2020 project large bank losses in pronounced downturn at $700 billion on soured loans and writedowns. In 2008 this loss was estimated at double the amount, suggesting that the global financial crisis was twice as severe as far as the banking sector is concerned.