The Peterson Institute for International Economics (PIIE) is an independent nonprofit, nonpartisan research organization dedicated to strengthening prosperity and human welfare in the global economy through expert analysis and practical policy solutions.
PIIE’s renowned scholars explore and analyze a broad range of economic topics and issues, including globalization, economic and growth prospects, finance, political economy, and trade and investment, as well as economic challenges facing individual regions and countries.
Banking’s Final Exam: Are Current Stress Tests and Reforms Enough?
Stress tests see whether a bank has enough capital to survive tough scenarios, like high unemployment and plunges in home prices. But are these tests, along with other reforms made under the Dodd-Frank Act of 2010 and the Basel III international banking regime, enough to make banks safe and sound? New research from Morris Goldstein’s book, Banking’s Final Exam, says no, and offers solutions.