Fed Stress Tests Show Banks' Resilience Despite Higher Losses

Citigroup and Huntington emerge stronger, while BMO and Citizens face challenges under severe recession scenarios.

The Federal Reserve's stress tests indicate banks can withstand a severe recession with $685 billion in projected losses.
Citigroup's capital requirements are expected to decrease, freeing up capital for potential share buybacks.
BMO's U.S. division recorded the lowest capital cushion among tested banks, with a significant drop in its CET1 ratio.
Credit card losses remain a major concern, accounting for a quarter of total projected losses.
Commercial real estate loan losses were stable compared to last year, despite ongoing market concerns.