How would the largest financial institutions fare during various future economic conditions? The Federal Reserve Board has released three scenarios the 19 big banks should use in preparing for their annual stress tests required by Dodd-Frank.

The three scenarios, baseline, adverse, and severely adverse, include "more than two dozen variables such as unemployment, exchange rates, prices, and interest rates," writes American Banker's Donna Boraks.

Next month the Fed will provide global market shock components – one-time, hypothetical events - that 11 of those institutions will have to test against in the worse economic case scenarios.

For the full piece see "Fed Releases Stress Test Scenarios for Big Banks" (may require subscription).