Fed includes ‘doomsday scenario’ in next round of stress tests
The Federal Reserve has specified the variables of the three scenarios that will be included in its 2013 comprehensive capital analysis and review (CCAR) stress tests, including a 'severely adverse' scenario of deep global recession and a stock market crash.
To comply with the Dodd-Frank Act, the Fed must specify at least three scenarios for both supervisory and company-run stress tests, to be applied to all large financial institutions in the US. The scenarios published on November 15 include
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