The Federal Reserve voted to pass the stress test reform, and Wall Street banks won a big victory

The Zhitong Finance App learned that the Federal Reserve voted to pass the final rules of the annual stress test on Wednesday, bringing a major victory to large Wall Street banks. Federal Reserve Vice Chairman Michelle Bauman said in a statement: “Stress testing is an important part of our regulatory capital framework. Today's changes preserve the resilience of stress testing by ensuring it's transparent, sophisticated, and risk-sensitive.” The Federal Reserve Board passed this annual stress test reform with 6 votes in favor and 1 against. The test was set up after the 2008 financial crisis to evaluate the performance of major Wall Street banks in a hypothetical recession scenario.

The Federal Reserve said the two final rules were broadly similar to the 2025 proposed rule, which was welcomed by the banking community at the time.

The agency is also seeking comments on a plan to “better reflect differences in banks' business models in generating revenue through fee revenue.”