BUSINESS

Nation's largest banks all pass Federal Reserve 'stress tests'

   Banks
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   Federal Reserve said Thursday.

   The annual “stress tests” show that the 33 largest financial
   institutions, including JPMorgan Chase, Citigroup, Bank of America and
   Wells Fargo, all hold more capital than they did the year before. They
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   continue to function.

   The stress tests were created in the wake of last decade’s financial
   crisis and the subsequent Great Recession. The implosion of the housing
   market led the U.S. into its worse economic period since the Great
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   (Jim Puzzanghera)

   This is the sixth round of stress tests the Fed has done.

   Under the Fed's most extreme scenario in this year's test, the U.S.
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   negative — meaning even the safest of assets would still lose money.

   Fed officials change the stress tests each year to mirror the world’s
   current economic climate. Other central banks, including the European
   Central Bank and Bank of Japan, have attempted negative interest
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   Thursday's announcement is one of two announcements by the Fed
   regarding the stress tests. The more important announcement comes next
   week, when the Fed will release the results for each of the individual
   banks. If the banks pass, they will be allowed to raise their quarterly