Once universally dreaded by banks, the Federal Reserve’s annual stress tests are becoming less stressful.
The nation’s largest banks breezed through the first phase of their annual tests on Thursday, demonstrating that they have enough capital to withstand the type of financial shock that nearly ruined the industry and the world economy in 2008.
The banking system, according to the test results, has an even larger capital cushion than it did going into last year’s exam. That is likely to increase calls from the financial industry and its allies in the Trump administration and Congress to start watering down the regulations.
