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According to Reuters, the Federal Reserve will seek significantly more capital from the largest U.S. banks and give some relief to smaller banks as it considers reforms to its annual ‘stress test.
Questions:
1. What is a stress test?
2. How will the proposed reforms mean different things depending on the size of the bank?
3. Why is this a change (i.e., what will be included in this package of modifications)?
4. Who is Daniel Tarullo?
Source:
Rucker, P. (2016). Fed will seek more capital from largest U.S. banks: Tarullo. Reuters.com, Sep. 26 (Retrievable online at http://www.reuters.com/article/us-usa-fed-tarullo-idUSKCN11W1UH).