Lower stakes could lead to better Fed stress tests
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E-mailBy Stephen Gandel
NEW YORK, June 24 (Reuters Breakingviews) - This year’s Wall Street exam has a twist: the 32 banks gauged on their performance in a hypothetical downturn face no penalty for poor results. The temporary change would make good permanent policy. Backlash has muddled proceedings. Restoring rigor matters more than punishment.
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CONTEXT NEWS
The Federal Reserve will release the results of its annual stress test of the nation's biggest banks after U.S. stock markets close on June 24. In February, the Fed said it would not use this year's test to set capital requirements, but plans to resume doing so in 2027.
(Editing by Jonathan Guilford; Production by Maya Nandhini)
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