Ever since the debacle of 2008, the Federal Reserve has conducted periodic “stress tests” on the big banks, assessing how a bank will hold up against market factors like unforeseen changes in interest rates or a sudden plunge in stock prices. The Fed also conducts a thorough review of the institution’s policies, processes and infrastructure.
One company that has consistently done well in these tests is JPMorgan Chase (JPM) . In its most recent evaluation, the bank’s reserves were found to be strong enough that the Fed gave management the go-ahead to proceed with an ambitious $10.6 billion capital repurchase plan.
