Fed Approves Stress-Test Overhaul in 6-1 Vote, Handing Big Banks a Win

TREE NEWS update: The Federal Reserve’s Board of Governors voted 6-1 on Wednesday to adopt changes to its annual bank stress tests, the post-2008 crisis framework that gauges how Wall Street banks would fare in a hypothetical recession. Fed Vice Chair for Supervision Michelle Bowman said the reform keeps the tests robust by making them more transparent, granular and risk-sensitive. The two final rules largely match versions proposed in 2025, and the Fed also sought comment on a plan to better reflect differences in fee income across bank business models.