The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Stephen Gandel

NEW YORK, June 29 (Reuters Breakingviews) - This year’s stress test predicted that big US banks would lose just 1% of their $3 trln of market assets in a 2008-like crisis. Bosses say they have become less-risky middlemen. Their own gauges of danger, however, and breakneck expansion to record size argue for greater caution.

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CONTEXT NEWS

The U.S. Federal Reserve on June 24 released the results of its annual stress test of the nation’s largest banks, scrutinizing their ability to withstand a hypothetical severe recession in which unemployment rises to 10%, house prices fall 30% and the stock market loses nearly 60% of its value. All 32 lenders passed.