FDIC Rolls Out Stress Test Rule For Large Banks

Law360, New York (January 17, 2012, 2:59 PM EST) -- Large U.S. banks supervised by the Federal Deposit Insurance Corp. will have to conduct annual stress tests to assess their financial stability under a proposed rule that the regulator approved Tuesday.

A component of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the proposal would apply to FDIC-insured state nonmember banks and FDIC-insured state-chartered savings associations with assets of more than $10 billion.

The FDIC said the stress tests would provide valuable insight on the banks' capital adequacy amid tough economic and financial conditions and...
To view the full article, register now.