Tarullo: Fed stress-testing is a work in progress

While the financial crisis made famous the terms “stress-testing” and “capital planning,” a Federal Reserve governor recently reminded industry participants that these are relatively new supervisory tools. Daniel Tarullo told an audience in Chicago that the Fed will learn from its 2012 stress test and capital review as it continues to improve its supervisory processes. Read on for more on the stress test and what Tarullo said about smaller banks.