The Federal Reserve has tested the banks' ability to weather the housing market crash, high unemployment and trade turmoil. The Federal Reserve said on Wednesday that the largest US banks are well capitalized and ready to withstand major shocks in economic and financial markets after subjecting them to a series of hypothetical catastrophe scenarios. Annual stress testing of banks, which the regulator began conducting after the financial crisis in 2008, showed that they can easily withstand a 40% drop in commercial real estate prices and cumulative losses of more than half a trillion...