Big U.S. banks passed the Fed's stress test—but there's a 'looming risk' says former Fed official

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Good morning.

In a welcome bit of news for the financial sector, the biggest banks in the U.S. all passed the Federal Reserve Board’s annual stress test. According to the Fed, the 23 banks subject to the test—including giants Citigroup, Bank of America, and JPMorgan Chase—are poised to weather a severe recession while continuing to lend to households and businesses.