Fed To Stress Test Banks For 60% Stock Market Dive, $110 Oil

The Federal Reserve will put banks through a stress test where the unemployment rate jumps to 10%, the stock market dives by 60%, and oil prices reach $110 a barrel, according to the methodology released Thursday. The now-annual stress tests put the nation's largest banks through such a "severely adverse" scenario. The Fed said the chief differences from last year include a somewhat larger widening in corporate bond spreads and the increase in the price of oil. The Fed noted the scenarios are not an economic projection.