Downturn could halve capital ratios of biggest US banks, Fed stress tests show

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A sharp downturn in the US economy would leave Wall Street's five biggest banks with among the worst capital ratios of America's systemically important financial institutions, according to stress tests published yesterday by the Federal Reserve – reinforcing concerns that their ‘too big to fail' status are allowing them to make riskier bets.

Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase and Morgan Stanley would see their Tier I, or ‘high-quality', capital as a share of risk-weighted

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