Wells Fargo & Co. said Friday it projected an overall $10.7 billion loss if the U.S. economy were to go through a severe downturn during a 2 1/4 year period ending June 30, 2017.
The bank projected losses of $57.6 billion — $46.1 billion for loan losses, $9.6 billion in trading and counterparty credit, and $1.9 billion in investment securities.
Much of the losses would be offset by $46.9 billion in fee and loan revenue minus noninterest expense.
Wells Fargo is among 31 bank holding companies required by the Federal Reserve to conduct stress-test assessments twice annually. The assessments are designed to gauge the potential impact of a severe downturn on bank operations and capital levels as part of the Dodd-Frank financial reform law.