NEW YORK (AP) — Shares of MetLife Inc. tumbled Wednesday after it was named as one of the four banks to fail Federal Reserve stress tests designed to determine whether banks are strong enough to survive a severe economic downturn.
THE SPARK: The Fed reviewed the balance sheets of 19 bank holding companies to determine whether they could withstand a severe crisis: unemployment at 13 percent, stock prices falling 60 percent over two years and home prices plunging 21 percent from today's levels.
The Fed released the results after the markets closed on Tuesday. Besides MetLife, the other three financial institutions that did not pass were Citigroup, Ally Financial and SunTrust.
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