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 Dodd Frank Act Stress Test (DFAST) results. Stress tests are assessments performed by the Federal Reserve to ensure banks are strong enough to withstand a downturn in the economy without setting off another financial crisis.
“Megabank CEOs aren’t playing T-ball, where everyone gets a participation trophy just for showing up. They’re playing with families’ lives,” said Brown. “Financial referees should be holding banks accountable with real stress tests.”
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.