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However, the banks would still have more than enough capital to absorb the losses, according to annual stress tests conducted by the Federal Reserve. The passing grades given by the Fed on Wednesday to banks including JPMorgan Chase and Goldman Sachs lent support to claims from Wall Street executives and regulators that systemically important banks can withstand heavy losses.
“Today’s results confirm that the banking system remains strong and resilient,” Fed vice-chair for supervision Michael Barr said in a statement. In a nod to the recent crisis, Barr warned the stress tests were “only one way to measure that strength” and said regulators “should remain humble about how risks can arise”.
https://www.ft.com/content/6d1d2087-9188-4378-bd59-f87c5adc593f
