These enhanced standards include tougher capital and liquidity requirements, the development of resolution plans (so-called living wills), mandatory stress tests conducted by the Federal Reserve and by the firms themselves, new counterparty credit limits, and more-demanding riskmanagement requirements. The Federal Reserve has made and will continue to make significant organizational changes as needed to best fulfill our responsibilities.
Even before the enactment of the Dodd-Frank Act, we had begun to overhaul our supervision of the largest, most-complex financial firms. An important milestone in this regard was the Federal Reserve’s leadership in the spring of 2009 of the Supervisory Capital Assessment Program, popularly known as the bank stress test, which comprehensively evaluated the health of the largest banking organizations in the country.