This is why I have strongly pushed for the recent shift toward greater transparency around the structure of the stress tests and the models themselves. It affords greater due process to the affected participants. In the same vein, I would welcome greater legal scholarship on the due process considerations associated with bank supervision as a process distinct from bank regulation.
By bank supervision, I refer to the processes and activities identified with examining banks, including checking compliance with laws and regulations, assessing bank capital and liquidity levels, assigning supervisory ratings to banks, and taking formal and informal enforcement actions.