Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and former counsel to the Fed Board of Governors, looks beyond the banking “stress tests” to lessons learned.
“Assuming the stress tests produced ‘material’ findings for the bank regulators (BofA’s $34 billion capital deficiency seems to be ‘material’) doesn’t this say something about the regulators’ own processes? The next question should be: What was the flaw in the regulators’ customary procedures that allowed these deficiencies to go undetected?”
Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu
