The Federal Reserve is requiring Capital One to resubmit its new capital plan.

Mark Lennihan/Associated Press

All of the nation’s largest banks passed the latest stress test on Wednesday, the first time all aced the exam since the Federal Reserve began administering the exercise seven years ago.

The passing grades shows that the nation’s banking system has sufficiently rebuilt its capital levels since the crippling losses of the 2008 financial crisis, while also learning how to effectively plan for another financial catastrophe.


Bank Stress Test: Part 2

America’s biggest banks breezed through the final phase of the Fed’s annual test.

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The test also paves the way for the banks to pay out the largest dividends in almost a decade, a boon for shareholders that have suffered through years of sagging returns.

The one wrinkle: The Fed is requiring Capital One to resubmit its new capital plan that addresses “weaknesses in its capital planning process.” Capital One can still pay dividends and repurchase shares.

The nation’s 34 largest banks have $1.2 trillion worth of capital cushion — as measured by their common equity — an increase of $750 billion since 2009.

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