Notably, we led the development of stress-testing large banking organizations’ capital adequacy. The first stress tests, in 2009, and the public disclosure of their results made it possible for large U.S. banks to once again attract private capital.
Since 2009, the stress tests and disclosures, together with other regulatory and supervisory actions, have contributed to a doubling in capital held by the largest U.S. financial institutions and the resumption of more-normal flows of credit. The Fed has also worked to draw the appropriate lessons from the crisis and to take the steps necessary to help avoid a similar event in the future.