Fed's 'stress tests' find 31 largest US banks would withstand a severe downturn

Economic Indicators Associated Press

All of the nation's 31 largest banks are adequately fortified to withstand a severe U.S. and global recession and keep lending, the Federal Reserve says.

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Results of the Fed's annual "stress tests" show that as a group, the 31 banks are stronger than they have been at any time since the 2008 financial crisis struck, thanks to a steadily recovering economy. The results build on positive outcomes from last year's tests.

The Fed will announce next week whether it will approve the banks' plans to issue dividends or repurchase shares.

The banks tested included JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo and Co. — the four biggest U.S. banks by assets.

The Fed has conducted stress tests of the largest U.S. banks since 2009.