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

Economic IndicatorsAssociated 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.

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.

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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.