© Reuters. FILE PHOTO: FILE PHOTO: A man wears a protective mask as he walks on Wall Street during the coronavirus outbreak in New York
By Pete Schroeder
WASHINGTON (Reuters) – U.S. financial regulators, banks and their investors will get their first glimpse into the health of the nation’s banking system as it confronts soaring corporate and consumer defaults in the economic crisis sparked by the novel coronavirus.
And no-one, including the U.S. Federal Reserve which sets the annual bank “stress test” exams, has a clue what to expect.
“That is the $100,000 question. Actually, it’s much bigger than that and I am sure the Fed is working hard to get it right. We’re curious, and we don’t have clarity,” said Kevin Fromer, CEO of the Financial Services Forum, which represents the biggest banks in the U.S.
That could mean banks may be on the hook for billions more in capital than they had anticipated,…