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Biggest U.S. banks are strong enough to weather a recession, Fed stress test finds

Biggest U.S. banks are strong enough to weather a recession, Fed stress test finds

All of the 34 largest U.S. banks are fortified enough to withstand a severe U.S. and global recession and continue lending, the Federal Reserve said Thursday.

The first round of the central bank's annual “stress tests” showed that as a group, the 34 big banks have gained strength thanks to a steadily recovering economy. The banks undergoing the seventh annual checkup included JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. — the four biggest U.S. banks by assets.

The banks were tested to determine if they have large enough capital buffers to keep lending, even if hit with billions of dollars in losses brought on by a financial crisis...

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