Larry Summers just obliterated the Fed's bank stress tests with a single sentence

REUTERS/Ruben Sprich

• The Federal Reserve’s sees bank stress tests as a key pillar of its post-crisis regulation of large banks.
• Lawrence Summers, the former US Treasury Secretary and former economic advisor to President Barack Obama, said the idea that all major US banks would be totally fine if economic and financial conditions deteriorate as sharply as some of the tests posit is simply not credible. 

Lawrence Summers, the former US Treasury Secretary and...