During a House Financial Services Committee hearing, Federal Reserve Board Vice Chair for Supervision Michael Barr highlighted the resilience of major U.S. banks in withstanding a severe recession scenario. The stress test results showed that all 31 banks involved could absorb losses while maintaining required capital levels, with a total hypothetical loss of nearly $685 billion. Despite challenges such as a surge in unemployment, plummeting real estate values, and falling housing prices, banks demonstrated the benefit of solid capital reserves built in recent years. While the industry's aggregate capital levels dropped slightly from the previous year, banks remain well-positioned to face evolving risks in the financial system. An exploratory analysis also revealed that large banks could withstand funding stresses and trading meltdowns, further emphasizing their strength. Overall, the stress test results underscore the banks' ability to navigate challenging economic conditions while continuing to support lending activities.