Fed says US banks can weather severe downturn comfortably

The largest US banks on Thursday easily cleared the Federal Reserve's annual health check, in a vote of confidence for the sector amid signs the U.S. economy could tip into a recession in the months ahead. The results of the Fed's annual "stress test" exercise showed the banks have enough capital to weather a severe economic downturn and paves the way for them to issue share buybacks and pay dividends.