Banks Biggest Stress Test Remains

NEW YORK (TheStreet) -- JPMorgan Chase (JPM) led the way in passing the Federal Reserve's stress tests and boosting payouts that, but banks still face big risks that went untested.

For bank giants, the prospect of bond ratings downgrades or a worsening of the European debt crisis is a still imminent threat, even after stress tests results added to a 2012 bank stock rally.

JPMorgan, Bank of America(BAC) , Citigroup, Morgan Stanley(MS) and Goldman Sachs(GS) and all face a debt downgrade at Moody's, in addition to an ebbing European crisis, which could yet stall a rally.

Stress test results showed stronger than expected dividend and share repurchase programs at some banks, while others like Citigroup(C) failed to meet the Fed's tests, putting capital return plans up in smoke.