FOR IMMEDIATE RELEASE
Tuesday, February 5, 2019
Contact: Nick Jacobs, 202-618-6430 or email@example.com
FED RISKS SNATCHING DEFEAT FROM THE JAWS OF VICTORY
Washington, D.C. – Dennis Kelleher, president and CEO of Better Markets, issued the following statement following the announcement by the Fed finalizing changes to bank stress tests:
“The Fed’s rigorous and independent stress tests have been one of the most important and successful post-crash tools used by U.S. regulators. In sharp contrast, Europe has used weak, bank-friendly stress tests that all the banks pass but remain systemic threats and unable to support economic growth.
“By giving Wall Street’s biggest banks more information about the tests under the guise of ‘transparency,’ the Fed risks following the failed path of Europe and snatching defeat from the jaws of victory.
“While transparency is generally good, it will be incredibly counterproductive if it allows the banks to game the tests. The Fed must be vigilant to ensure that that this critical tool does not become ‘no stress’ stress tests.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.