Stress test results: Stressed out

Stress test results: Informed debate is a crucial part of public policy development. But the behind the scenes tug-of-war between banks and the US government over the results of their recent stress tests strains the exercise’s already tenuous credibility. It also shows that banks have become too powerful. How so? First, banks and their overseers run stress tests all the time, on individual products, divisions and the institutions as a whole. Without them, it would be very difficult to manage r...