Wall Street Gets Relief From Tough Aspect of Fed's Stress Tests
- Regulator downgrades qualitative portion of annual exams
- Changes will go into place for this year’s assessments
A pedestrian stands in front of a Toronto-Dominion Bank building in Toronto.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
One of Wall Street’s biggest annual fears is poised to disappear after the Federal Reserve said Wednesday it plans to ease what was one of the most burdensome aspects of its stress tests.
For the largest U.S. lenders, the so-called qualitative portion of the exams will no longer be a factor in whether they pass or fail, the Fed said in a Wednesday statement. But some foreign banks that have had trouble clearing the hurdle -- such as Deutsche Bank AG -- will still face the measure.