In the previous post we noted a WSJ editorial that stated, ”The best that can be said about the stress tests is that they’re over.”
We wouldn’t go that far, but we’ve been highly critical of the regulators for a number of reasons. (See our various posts about the stress tests, and you can search for our posts on regulators and capital requirements if you want.) Here’s a new criticism that we haven’t mentioned before.
Within firms, it’s almost never the case that stress tests and scenario analyses are performed… Read the rest
