A Theory For Deliberation-Oriented Stress Testing Regulation

Of the many recent changes in the legal-regulatory regimes affecting financial institutions, the advent of stress testing as a key regulatory tool deserves special attention on account of its novelty and unique potential.1 To most Americans—and indeed, to most lawyers—the mention of a stress test likely prompts thoughts of a visit to the cardiologist before it suggests anything about the financial system.Those trained in engineering will have a different view of stress testing in mind

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