Big Banks Ace Fed Stress Test

All 32 of the largest U.S. banks passed the Federal Reserve's annual stress test, clearing the way for increased dividends and stock buybacks.

JPMorgan Chase announced a $50 billion share buyback, while Goldman Sachs and other banks raised dividends.

The test results showed that the banks could withstand a severe recession, but critics noted that the hypothetical scenarios were less stringent than in prior years.

The passing grades come amid a broader debate over capital rules and the health of the financial system.