US Fed to adapt stress test for insurance companies

“While distress at these firms poses risks to financial stability, particularly during a stressful period, certain sources of risk to these firms are distinct from the risks banking organizations face,” Federal Reserve Vice Chairman Stanley Fischer said on Wednesday.

These three insurance behemoths designated by U.S. regulators as non-bank systemically important financial institutions–Prudential, MetLife and AIG– could put the economy at serious risk if they failed.

The US central bank has been conducting stress tests for five years on bank holding companies with at least $50 billion in assets.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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