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By Alastair Macdonald and Robin Emmott BRUSSELS (Reuters) - Scottish leader Nicola Sturgeon got a "sympathetic" hearing in Brussels on Wednesday as she pleaded her case for Scots to stay in the EU, showing how Britain's vote to leave the bloc could splinter the United Kingdom. Outgoing Prime Minister David Cameron flew home after briefing his 27 peers on Tuesday evening on last week's referendum defeat. Pro-independence leader Sturgeon has said that Scotland, where voters backed staying in the EU by a near 2-1 majority, must not be dragged out of the EU against its will.
The Federal Reserve said Wednesday that US operations of Germany's Deutsche Bank and Spain's Santander had failed an annual stress test, pointing to weaknesses in capital planning and risk management. The Fed granted a conditional approval to Morgan Stanley to return funds to shareholders, while delivering a full endorsement to 30 other large financial institutions on their capital distribution plans. Santander Holdings USA fell short of the Fed's evaluation for the third year in a row, while Deutsche Bank Trust Corporation failed for the second straight year.