Fed Moves To Shed Some Light On Stress Tests

Law360, New York (November 8, 2013, 2:06 PM EST) -- In an effort to address industry concerns that its stress testing process is too secretive, the Federal Reserve on Thursday said it will release more complete narratives about the scenarios that banks and other financial institutions are required to measure up against.

The Federal Reserve began stress testing banks in 2009, determining how they would fare in three different levels of economic shock. A second set of stress tests was included in the 2010 Dodd-Frank Act.

While banks and industry observers have generally been supportive of...
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