Fed Says 2018 Stress Tests Will Include Steeper Recession

Law360 (February 2, 2018, 8:19 PM EST) -- The Federal Reserve on Thursday said it intends to test this year whether the biggest banks will be able to survive a steeper recession, including higher unemployment rates and a crushed housing market, than has been envisioned under previous years' stress tests.

Stress testing has become a key part of the Fed’s regulatory toolkit. The Fed administers two different stress tests each year, with banks conducting the Dodd-Frank Act stress tests on their own and the Fed providing a more stringent exam through the Comprehensive Capital...
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