Fed makes stress tests simpler, not necessarily cheaper

By James Langford

Published April 24, 2018 4:01am ET

Fed makes stress tests simpler, not necessarily cheaper — Using the term “deregulation” to describe the Federal Reserve’s plan for simplifying stress tests that determine how much money banks can return to shareholders is technically correct. It’s also more than a little misleading. When businesses talk about deregulation, they generally assume that curbing or eliminating an element of government oversight will make their operations […]

Using the term “deregulation” to describe the Federal Reserve’s plan for simplifying stress tests that determine how much money banks can return to shareholders is technically correct. It’s also more than a little misleading.

When businesses talk about deregulation, they generally assume that curbing or eliminating an element of government oversight will make their operations less expensive, thus boosting their bottom lines.