Brown Slams Fed for Helping Big Banks Avoid Failure on Stress Tests

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released the following statement on The Wall Street Journal report that the Federal Reserve had private conversations with Goldman Sachs and Morgan Stanley offering both banks a deal that would allow them to maintain their capital payouts and receive “conditional non-objection” stress test grades instead of failing the tests.

“In the past, bank stress tests were real tests. These days, it is more like a cozy conversation between friends. With each change to weaken financial protections, big bank lapdogs increase the likelihood of another crisis that devastates hardworking Americans.”