Bernanke: Risks Remain Despite Stress Tests
But Fed chief is encouraged by bank response
By Rob Quinn,  Newser Staff
Posted May 12, 2009 2:31 AM CDT
Treasury Secretary Timothy Geithner, left, and Federal Reserve Chairman Ben Bernanke gather in Geithner's office before meeting last week with reporters to discuss ongoing repairs to the economy.   (AP Photo/J. Scott Applewhite)
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(Newser) – Big banks' response to "stress tests" has been encouraging but they will need to watch out for risks not covered by the tests, Ben Bernanke warned regulators yesterday. The Fed chief—signaling that investment giants like Goldman Sachs can expect tighter scrutiny—said banks should self-test for potentially disastrous "operational, liquidity and reputational risks," Bloomberg reports. Bernanke warned that the financial situation remained fragile, and that the government was prepared to inject more capital to shore up the system.