Fed Proposes Annual Stress Tests for US Banks: Report

The Federal Reserve has proposed a new rule that will subject U.S. banks to annual "stress tests," Justin Baer of The Financial Times told CNBC's "Fast Money" on Tuesday.


Under the rule, the Fed would reserve the right to veto dividend pay-outs if the banks failed to pass the tests.

The Fed oversees Wall Street's largest banks, such as Citigroup , Bank of America , JPMorgan Chase , Wells Fargo and Goldman Sachs .

The rule has yet to be approved by the Fed and it will be put out for public comment within weeks, according to the FT.