All major US banks pass Fed's 'stress test'

WASHINGTON, D.C. — All 31 big US banks have passed the Federal Reserve's (Fed) annual "stress test" designed to assess how well they would fare in a major financial crisis, the US central bank said on Wednesday, while warning that losses would be higher than last year.

The stress test was broadly similar to last year, the Fed said in a statement, and modeled a severe global recession which caused a 40-percent decline in commercial real estate prices, a 36-percent fall in house prices and a sharp spike in the unemployment rate.