Problems center on computer models that assess how banks would fare in a recession
By Ryan Tracy | The Wall Street Journal
The Federal Reserve is revamping the way it oversees its annual bank stress tests, after internal reviews found the regulator wasn’t handling the exams with the same rigor it demands from financial institutions.
The changes, disclosed in a report by the Fed’s internal watchdog, demonstrate how the tests are still a work in progress even though, six years after their birth amid the financial crisis, they have become a pillar of the central bank’s supervision of large financial firms.
