WASHINGTON – The Federal Reserve is proposing to streamline the annual stress tests that it conducts to see if the nation's largest financial firms can survive a severe recession.
Randal Quarles, selected by President Donald Trump to be the Fed's vice chairman for financial supervision, says the change is being put forward in an effort to ensure the Fed's regulatory measures are as "simple and transparent" as possible.
The proposal would cut the number of capital-related requirements large banks must meet from the current 24 to 14. The Fed will consider putting it into effect after a 60-day comment period ends.
The proposal is the first major rules change for big banks that the Fed has considered since Trump took office with a vow to eliminate regulations seen as burdensome.