Here Is What Recent Federal Reserve Stress Testing Results Mean for Large Bank Stocks

As expected, 23 of the largest banks with a presence in the U.S. easily passed the Federal Reserve's 2021 annual stress testing, the third such time within roughly the last year that banks have been put through the exercise.

As a result, limitations on bank capital distributions that have been in place for most of the pandemic will expire on June 30 and banks will get the green light to repurchase shares and grow their dividends much more autonomously, although still subject to normal limitations.

Let's go through what happened in stress testing and what this could mean for some of the largest bank stocks.

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Source Fool.com