Thaughts of stress test

For this reason, the banking risk management (real, not the most reliable group of these days) tend to see these tests as a public relations stunt that the regulatory authorities will use their bodies to force the finger line of Uncle Sam. That in itself is worrying. Regulatory authorities should not invent reasons to regulate properly.

Responded correctly to the bank when the officer says that he is "how high?" For the comment about the complexity, there are two minds. I am quite far into the camp that wants to move into the financial system. I would like the system, which leads to the banks, which are largely limited to traditional financial and investment banking, with more exotic instruments. Banks should be subject to the provisions of a rather intense and investment banks are more lenient treatment to exchange any explicit or implicit government guarantees.

This type of regime in natural banks will become less complex and easier to control regulate.That is a dispute with the banks on the results of these tests is not certain that the ability to understand the body. This gives banks too much. It would be better to control the need to reduce the complexity of their levels of understanding. Otherwise, we keep the upper hand - and no testing will be sufficient to diagnose problem.

At at the same time, the argument to be that the regulatory authorities of their level of knowledge. I do not want a system in which innovation and new products squelched, because it is difficult. We do not want to discourage the promotion of art production of the Boeing aircraft, simply because we are more sophisticated. Government agency responsible for testing new aircraft carriers is expected to manage the nuances of new technologies. I see no reason to fund another.