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US banks clear first hurdle of Federal Reserve's annual stress test

[WASHINGTON] The 18 largest banks operating in the United States took the first step toward doling out capital on dividends, share buybacks and other investments on Friday, after clearing the first stage of their yearly health checks with the US Federal Reserve.

The central bank said lenders, including JPMorgan Chase & Co , Citigroup Inc, Goldman Sachs, Morgan Stanley and Bank of America Corp, would face losses of US$410 billion under its most severe recession scenario ever, but levels of high-quality capital would still be well above regulatory minimums.