Fed should share bank “stress-test” details

School of Management executive-in-residence Mark T. Williams, a former Federal Reserve bank examiner, says the Fed should be sharing more details with the public about the “stress-testing” being conducted on the nation’s 19 largest financial institutions.

“It is understandable that the Fed needs to protect the confidential nature of test results.  But how the tests are constructed and run should not be off limits. 

“Having such basic information could help to restore trust in our banks, especially if the public is aware that such tests are grounded in conservative risk-management principles.  Currently the public has only been given a narrow-view window into assumptions used.”

Contact Mark T. Williams, 617-358-2789, williams@bu.edu

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