The Federal Reserve Board announced the six major U.S. commercial banks that will participate in a pilot climate scenario analysis exercise designed to improve their ability to identify and mitigate climate-related risk.
OCC Comptroller Michael Hsu cautioned that "tail risks" ("low probability, high impact risk events") have increased as a result of Russia's invasion of Ukraine. He also described tail risk factors associated with the trading of crypto-related derivatives.
The Federal Reserve Board reported the results of the Dodd-Frank Act Stress Test 2021. The FRB concluded that the 23 participating firms "have sufficient capital levels to absorb losses during stressful conditions."
In testimony before the Senate Banking Committee, Federal Reserve Board Vice Chair for Supervision Randal K. Quarles provided legislators with an update on the effects and wind-down of programs implemented in response to the pandemic.