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Fed Stress Test Reveals Big Banks Can Weather a Severe Recession


The Federal Reserve gave America’s biggest banks a clean bill of health in its annual stress test, saying they would be able to continue lending to households and businesses even in the face of a severe recession.

This year’s stress test measured the ability of the 34 largest banks to maintain strong capital levels in a hypothetical recession marked by a sharp rise in unemployment and a sharp drop in stock prices.


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