All 32 of the nation's biggest banks clear the Fed's annual 'stress test'

All 32 of the nation's largest banks passed the Federal Reserve's annual stress test, indicating the banking system can withstand a severe economic downturn. The test simulated a scenario with 10% unemployment, a 4.6% GDP contraction, and significant declines in housing and stock markets, yet banks' capital ratios remained well above regulatory requirements. JPMorgan Chase announced increased dividends and stock buybacks following the results.