Fed's Fisher: Worst-Case Stress-Test Scenario Very Unlikely

Richard Fisher, president of the Federal Reserve Bank of Dallas, described the worst-case scenario in the Fed's recent bank stress tests as all but "unimaginable," saying the exercise should help restore some confidence.

"It was an extremely stressful stress test," Fisher said Friday.

As for criticism that the tests weren't stringent enough, he said, "You can pick at the scab if you want to (in terms of the test criteria), but the stress tests, I think, did their job."

Fisher, speaking with reporters here during the 125th Annual Convention of the Texas Bankers Association, said some of the assumptions in the worst-case scenario outlined by the tests were more extreme than anything since the Great Depression, "which to me are unimaginable."

Read Full Article from Wall Street Journal

- Posted: 2009-05-15 10:35:43

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