Stress tests fuel talk of payout approval

The Federal Reserve’s annual stress tests found 29 of the 30 largest US banks could withstand a deep recession and still pay dividends, fuelling speculation about which firms will win approval next week to raise payouts.

Zions Bancorporation is the only lender that came in below one of the Fed’s main capital thresholds in results released on Friday by the central bank that simulated a severe economic slump.

All 30 firms, including Salt Lake City-based Zions, topped the minimum in a separate scenario of rising interest rates.