Do bank stress tests continue to serve their intended purpose?

The US Federal Reserve’s (US Fed) latest stress test results are in. Banks passed. But this time around, the result wasn’t just a statistical curiosity. It translated into hard dollars: more dividends, easier share buybacks, and, in some cases, a sharp decline in capital buffer requirement. Goldman Sachs stood out in this year’s stress tests – not for how much it would lose, but for how little. The investment bank is projected to lose just