The Wall Street Journal: Federal Reserve to end pass/fail grades for Wall Street firms

WASHINGTON—Regulators took steps on Wednesday to dial back scrutiny of big U.S. banks, asset managers and insurance companies, easing policies set up after the financial crisis.

The Federal Reserve said it would end a system of giving pass or fail grades to domestic banks on a portion of their annual stress tests, which measure whether the firms could keep lending during a severe downturn.

Also read:Fed votes not to impose capital buffer on banks

Meanwhile, a panel of federal regulators charged with assessing risk to the financial system proposed raising the bar by which it would designate nonbanks such as insurance companies or asset managers to stricter supervision.

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