Watch: Elizabeth Warren laughs out loud as CNBC host says banks can do their own stress testing
CNBC/screen grab

Sen. Elizabeth Warren (D-MA) laughed out loud after CNBC host Sara Eisen argued that banks were qualified to do their own stress testing.

During an interview on Wednesday, Eisen asked Warren about legislation she has sponsored following the collapse of Silicon Valley Bank. The bill would undo Trump-era regulation rollbacks.

"We've had a number of those CEOs on the shows in the last few days, Fifth Third, Schwab, they do their own stress testing," Eisen said as the senator laughed.

"I'm sorry," Warren replied. "I taught school for many, many years and I did not let my students do their own testing."

"The testing that is meaningful is the testing that comes from the outside. And it's also the testing where you don't give the answers in advance," she continued. "The whole point of stress testing is for someone on the outside of the bank to say, hmm, what could go wrong here and to make sure that the bank could withstand those kinds of problems like a sudden increase in interest rates."

Warren added: "And for these banks to say not to worry, we're testing ourselves is truly laughable."

Watch the video, first flagged on Twitter by Aaron Rupar, at this link.