Better Markets to Defend Stress Tests at Key Fed Conference Tomorrow
By Better Markets
Tomorrow is a huge day for defending stress tests — those vital tools that protect taxpayers and our economy by making sure that banks have enough capital to absorb their own losses without needing bailouts. The Federal Reserve invited academics, regulators, bankers and Better Markets to speak at a conference on the transparency and effectiveness of stress tests, which were critical in stopping the financial crash in 2008.
Fed Chairman Jay Powell and Fed Vice Chairman for Supervision Randy Quarles will deliver the introductions at the July 9 conference at the Federal Reserve Bank of Boston. Then our President and CEO, Dennis Kelleher, will be on the first panel, discussing “Stress Tests as a Policy Tool.”
Stress tests, as we’ve detailed here, have been invaluable in strengthening our financial system. They must continue to be robust and credible. Unfortunately, they’re under constant assault by Wall Street’s biggest banks (and their allies) who prioritize their self-interest in weaker tests, reduced capital, bigger bonuses and, ultimately, bailouts if needed.
To help counter that assault and refocus the discussion on the public interest while rebutting the misinformation that too often gets put out about stress tests, we will be providing more commentary on them after the conference is over. You can look to upcoming Better Markets newsletters, blog posts, and media appearances for that.
In the meantime, this collection of commentary, analysis and other resources can help you make sense of the issues and view some of our prior work on stress tests over the years:
12 Better Markets Resources to Help You Make Sense of Stress Tests
You can learn more about the conference, and livestream it, at “Stress Testing: A Discussion and Review.” We’ll be there, thanks to your support, speaking up for Americans whose jobs, homes and savings are protected by stress tests!