The stress assessment also showed how much can be learned by explicit comparisons of the practices and risks of different firms, rather than focusing on only one firm at a time, as was often the practice in the past. Thus, the Federal Reserve is increasing its use of crossfirm, horizontal examinations.
Moreover, we will be looking at all activities within a consolidated organization that can create risk to the firm and the financial system, not just those that increase risk for insured depository institutions within the larger firm. A quantitative surveillance mechanism for large, complex financial organizations will be an essential component of our multidisciplinary approach.