Major US Banks Pass Fed Stress Tests, Clearing Way for Buybacks

The Federal Reserve's annual stress tests found that the 23 largest US banks have enough capital to withstand a severe recession.
The stress test scenario included a rise in unemployment, drop in home prices, and decline in commercial real estate values that would result in over $500 billion in losses.
The banks tested, including JPMorgan, Bank of America, and Wells Fargo, came out with strong capital levels, though some regional banks lagged behind.
The results allow banks to return capital to shareholders through dividends and stock buybacks, though payouts may be modest due to economic uncertainty.
Regulators said the tests show the banking system is resilient but that continued vigilance is needed to ensure banks can withstand various economic shocks.