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 Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) Stress Test results. The CCAR Stress Test is an annual exercise by the Federal Reserve to assess whether the largest banks operating in the United States have plans to remain well-capitalized.
“Banks are flush with cash and could be investing in the real economy or reducing their riskiness. The Fed just approved plans to hike CEO pay and continue enormous stock buybacks instead. Wall Street is showering President Trump’s wealthy friends with more money, and regular Americans are just getting hosed.” said Brown.
After the passage of S. 2155, stress tests for most large banks are less frequent. Financial regulators have further weakened the tests by reducing the amount of capital required to pass, handing out more information to help banks prepare in advance, and exempting banks from the most stringent components.