Bankers have a new year to fear: 2018. That’s when the U.K. could complete its retreat from the European Union, potentially revealing the full scope of consequences for lenders entrenched in London. It’s also the year that European banks have to get their act together on the Federal Reserve’s annual stress tests to avoid having a chunk of their profits locked up across the Atlantic. The Fed’s latest assessments of whether banks can weather a financial crisis come Wednesday. U.S. units of Deutsche Bank AG and Banco Santander SA were the only firms of 31 tested that failed in 2015. While some foreign banks could again fall short this week, that kind of floundering will have a much...
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