Banks Pass Stress Test

No worries, says the Federal Reserve. Stress tests on the nation’s largest banks showed they would survive a harsh recession and market crash—backing up multiple years of government work to strengthen the financial system. However, critics argue that the tests were not tough enough and undersold potential losses as well as the systemic risk of multiple collapses. Notably, Morgan Stanley and JPMorgan Chase produced some of the worst results during the tests, whose results were released Thursday.