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.
Although Wall Street anxiously awaited the results of bank stress tests in Europe, the real news is elsewhere: the improving economic conditions across Europe. Can the U.S. learn a lesson from Germany and France?
After banks stocks took a beating when the EU first announced it would stress-test the region's banks, the sector has recovered and then some. This could be good news, but more likely it means investors will be surprised to the downside.
