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Fed Toughens Stress Test as Banks Await Trump's Promised Relief

  • Deeper stock-market crash, recession are among 2018 scenarios
  • Banks still seen likely to preserve buybacks, dividend
The Federal Reserve building in Washington, D.C.

The Federal Reserve building in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg

U.S banks are facing the toughest stress test in years, even after the Trump administration promised to free the industry from some of its most burdensome regulations.

Banks will have to prove they can survive a steeper stock-market crash, a worse housing crisis and a bigger economic contraction as the Federal Reserve conducts its annual review of their finances -- a key step toward higher buybacks or dividends -- regulators
said Thursday.