The Federal Reserve said Wednesday that the biggest banks operating in the U.S. would be able to withstand a severe recession scenario while maintaining their ability to lend to consumers and corporations. Each of the 31 banks in this year’s regulatory exercise cleared the hurdle of being able to absorb losses while maintaining more than the minimum required capital levels, the Fed said in a statement. The stress test assumed that unemployment surges to 10%, commercial real estate values plunge 40% and housing prices fall 36%. “This year’s results show that under our stress scenario, large banks would take nearly ... (full story)