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Fed Officials Voiced Doubts First Bank Stress Test Would Succeed

Federal Reserve officials including current Chair Janet Yellen privately voiced concern in 2009 that the first stress test of the largest U.S. banks wouldn’t restore confidence in the financial system.

The central bank on Wednesday released transcripts of its 2009 meetings, including three sessions before the test results were published in May, showing that some governors and regional Fed presidents were worried the reviews would reveal big capital holes and further panic investors.