Tight Bank Oversight Could Offset Stress Test Predictability

Law360, New York (March 4, 2015, 7:08 PM EST) -- Critics of Wall Street banks have begun to argue that the Federal Reserve’s stress testing process has become too predictable and easy to game, but that predictability may not matter if there is tight enough supervision of the largest institutions, experts say.

The Fed on Thursday is set to release the first of two different tests of the biggest banks’ ability to handle various levels of economic shocks. Such stress tests have become a key tool for bank regulators to assess the safety and soundness of...
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