The stress-testing framework is the most significant regulatory achievement to come out of the 2008 financial crisis, New York Fed research director Beverly Hirtle said on October 9.
In a speech looking back at the design choices around stress-testing, Hirtle noted there was an urgent need to assess the capital needs of banks in 2009, but banks were unwilling to be the first to break ranks and admit they needed more capital.
By requiring banks to raise more capital if their ratios fell below c
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