WASHINGTON (AP) — The second-ranking member of the Federal Reserve says the central bank will conduct a fourth round of stress tests in the coming weeks to determine if U.S. banks can withstand a recession.
Vice Chairman Janet Yellen says the tests are necessary because of the increased downside risks that Europe's debt crisis poses to the U.S. economy and financial markets.
Yellen says: "We are monitoring European developments very closely, and we will continue to do all that we can to mitigate the consequence of any adverse developments abroad on the U.S. financial system."
The Fed oversees Wall Street's biggest banks, including Citigroup, Bank of America, JPMorgan Chase & Co., and Wells Fargo. The Fed has performed periodic stress tests on the 19 banks it watches since 2009.