Download or read book March Madness in Wall Street written by Marcelo Fernandes and published by International Monetary Fund. This book was released on 2015-12-23 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Annual stress tests have become a regular part of the supervisors’ toolkit following the global financial crisis. We investigate their capital market implications in the United States by looking at price and trade reactions, information asymmetry and uncertainty indicators, and bank activities. The evidence we present supports the notion that there is important new information in stress tests, especially at times of financial distress. Moreover, public disclosure seems to help reduce informational asymmetries. Importantly, public disclosure of stress test results (and methodology) does not seem to have reduced private incentives to generate information or to have led to distorted incentives.