FSA: tough, not super-tough

The UK financial watchdog deserves a pat on the back for outlining the nightmare economic scenario it thinks banks should be prepared for. But it is not everyone’s idea of Armageddon. The Financial Services Authority conducted stress tests on the sector when UK banks were bailed out in October, and launched additional tests on lenders seeking to participate in the government’s risky-asset insurance scheme in February. Two of the lenders, Royal Bank of Scotland and Lloyds Banking Group, went int...