The Federal Reserve's recent stress tests have shown that all major U.S. banks can endure a severe recession while continuing to lend to consumers and corporations. Despite the overall positive results, some banks, including JPMorgan, found the Fed's estimates more optimistic than their own projections, particularly regarding the benefit in OCI. The tests revealed that the biggest four U.S. banks failed the 'living will' test, indicating they cannot credibly fail. The stress tests also showed that BMO, Citizens Financial, and HSBC had the lowest capital ratios. Following the results, several banks announced dividend increases and share buyback plans. JPMorgan plans to boost its quarterly dividend to $1.25 per share from $1.15 and authorize a new share buyback of up to $30 billion. Bank of America plans to increase its quarterly dividend to $0.28 per share, while Goldman Sachs plans to raise its dividend to $3 per share from $2.75. Citi plans a quarterly dividend of $0.56 per share. These moves reflect confidence in their financial stability despite the tests projecting higher potential losses than last year.