The Fed’s Black Sky Scenario Revealed. Next: $AAPL, $GS, $SINA, $GOOG

The dark clouds in the Federal Reserve’s 2012 annual stress testare keeping bankers up at night, as banks are being asked to imagine their balance sheet situation under some horrible economic scenarios.

Under the Fed’s bleakest black sky scenario, financial institutions will have to weather 13.1% unemployment, the Dow at 5,600, and Europe in severe recession. The test, known as the Comprehensive Capital Analysis and Review, includes 12 other metrics for the U.S. market including GDP and inflation, with another 11 points for global economies..→Read more