Financial Times FT.com

Focus switches to stress-test legacy

By Krishna Guha in Washington

Published: May 7 2009 22:33 | Last updated: May 8 2009 00:36

The Obama administration put its economic credibility on the line with the bank stress tests. It forced banks to endure three months of extreme uncertainty while the process played out. Was the outcome worth it?

Sceptics argue that the stress-test elephant gave birth to a mouse. Following the tests, the 19 leading US banks will be required to increase their tier-one regulatory capital by only $9.5bn.

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