WASHINGTON — Federal regulators defended themselves Wednesday against charges in a government report that supervisors knew of weaknesses in risk management at large financial institutions but did not demand changes.

In a Senate Banking subcommittee hearing, the Government Accountability Office said banking, thrift and securities regulators found problems with the models and stress tests financial institutions employed to gauge their risk, but the agencies continued signing off on positive examinations.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.