Fed's Tarullo: We Will Make Stress Tests Adjustments

The video discusses the concept of surcharge under stress situations, emphasizing that while the surcharge addition will remain consistent with normal circumstances, adjustments will be made in stress tests. Conservative assumptions have been included in stress tests to account for unknown factors and enhance resiliency in large institutions. The timing for implementing these changes is uncertain, but a proposal will be released to allow institutions to plan for increased surcharges, potentially with a phased approach.

What factors should be considered when determining the surcharge under stress situations?

Evaluate responses using AI:

OFF

How might the surcharge addition change compared to previous stress tests?

Evaluate responses using AI:

OFF

What is the significance of the phrase 'unknown unknown' in the context of stress tests?

Evaluate responses using AI:

OFF

What considerations are there regarding the timing of the new surcharge implementation?

Evaluate responses using AI:

OFF

What does the speaker imply about the potential phase-in of the new surcharge?

Evaluate responses using AI:

OFF