stress test for banks

The Federal Reserve has set a Jan. 7 deadline for the largest banks to prove they have the capital to withstand another financial crisis. Bank of America, JPMorgan Chase, Citibank and 16 others will have to file so-called "stress test" documentation by then.

Europe's stress tests of major banks may have understated some banks' holdings of potentially risky government debt, The Wall Street Journal said. Some banks excluded certain bonds, and some reduced the sums disclosed to account for short positions. As a result, banks including Barclays PLC...