Wall Street: US banks have significant exposure to eurozone debt (Photo: EUobserver)

US to conduct stress tests against euro collapse scenario

US banks are to be subjected to stress tests on the scenario of a sudden shock to the American economy if the eurozone crisis significantly deteriorates.

The US Federal Reserve on Tuesday (22 November) announced that it would hold the tests, the third round of such trials since the start of the economic crisis, to measure which banks would be able to keep their heads above water if worst comes to worst.

The tests will assume a rise in US unemployment to 13 percent up from the cu...

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