Comment Is the test a regulation? (Score 4, Insightful) 67
The Fed wants to keep the details secret and vary them frequently so the banks aren't over optimizing to the test. This makes senset, for example with standardized crash testing it is common for cars to perform great on the exact crash scenario tested for, but poorly on off-nominal crash scenarios that occur in the real world.
On the other hand, secret laws and regulations are antithesis to free society because how can you justly expect anyone to follow rules when you won't tell them what the rules are. And since the banks are required to modify their behavior if they fail these tests, then the tests are effectively regulations.
A fair solution would be to have the test published ahead of time, but still change frequently adapting to what the Fed perceives as gaming of the test. The problem is that going through the normal regulation process with comment periods and such takes a good two years at least, and the Fed would like to move faster than that.