Fed wants feedback on “Stress Test”

Per WSJ:

WASHINGTON—A top Federal Reserve official is reaching out to a variety of bank executives to discuss how the central bank might make its annual “stress tests” less stressful.

The discussions between Fed governor Daniel Tarullo and bank executives comes as Washington and Wall Street debate whether postcrisis rules—including the annual tests of banks’ ability to withstand tough times—should be scaled back for smaller banks. Some banks say the burden of complying with the tests far outstrips the benefit to regulators or the financial system.

Mr. Tarullo has held at least two meetings with bank executives in recent weeks, including one soliciting feedback on the stress tests from a handful of large regional banks, according to people familiar with the meetings.

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