Fed to Unveil New Stress Test Plans for Big Banks This Month (1)

Wall Street banks will likely get an earlier look into the criteria for the Federal Reserve’s annual stress test under a plan set to be released later this month.

The new Fed proposal will outline detailed descriptions, as well as the rationale behind key modeling choices, said Michelle Bowman, the agency’s top bank cop, as she previewed the changes on Thursday.

“These actions are part of a broader set of capital-related measures designed to right-size and recalibrate the regulatory framework to better balance safety and soundness with the role of the financial system in promoting economic growth,” Bowman ...