The Federal Reserve is currently conducting another round of stress tests, using two new severe downside scenarios published last month, and will release bank-specific results from both scenarios before the end of the year.6 Taken together, these actions will preserve capital in the system during this highly uncertain time.
As I noted, I also hope that the process we followed to arrive at these decisions will affirm that our actions, even in a crisis, will be dictated by the most comprehensive analysis we can do in a timely manner and will be as tailored to individual institutions’ condition as is feasible given the circumstances.