Financial institutions could face tight disclosure deadlines
and market overreactions over publicly disclosed summaries of
financial data following the release of proposed stress testing
rules mandated by Section 165 of Dodd-Frank.
Industry associations believe that while stress testing
incentivises holding more capital and deleveraging in risky
assets, financial markets could become less stable following
public releases of stress test summaries.
Theres always a concern that you create a self
fulfilling prophecy that the average investor doesnt
place results in context, Scott Talbott, senior vice
president of government affairs at The Financial...