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'Extreme' Stress Tests; Ugly FHA Audit; Et Tu, Michael Corbat?

Receiving Wide Coverage ... Stress Tests: The Fed released the scenarios for the next round of modeling exercises mandated by Dodd-Frank for 30 or so large banks. The hypothetical economic shocks this time include a sharp slowdown in China. An industry lobbyist tells the Journal that these theoretical stressors are "the most extreme to date." But Times columnist Peter Eavis wonders why 1970s-style runaway inflation isn't considered in the stress tests. Remote as that scenario may…

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