The central bank said that while financial markets' desire for higher yields raises the potential for losses, capital and liquidity safeguards temper any concerns about a looming crash.
As the central bank board proceeds with reforms easing the post-crisis regulatory regime, the Obama-appointed governor has not shied from opposing the agency’s course.
The regulatory relief bill passed last year eliminated mandatory stress tests for dozens of regional and midsize banks, yet many banks continue running internal tests anyway. Here’s why.
The central bank said the supplemental document “provides significantly more information on the stress test models that are used to project bank losses, compared to disclosures from past years.”
Speaking at a press conference, Federal Reserve Chairman Jerome Powell said the bank’s risk management failures have required a dramatic overhaul of its processes.
