The nation's largest banks are all financialy strong enough to weather an economic crisis, the Federal Reserve said Wednesday. Thirty-one banks in all passed the Fed's annual stress test, meaning they had enough available capital to withstand a theoretical depression in which unemployment soars to 10 percent amid collapses in the housing and stock markets.
However, it was only the first stage of stress testing. Next week, the Fed will announce whether banks pass a second test to determine if they are fit enough to buy back stock and distribute dividends to shareholders.
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