HousingWire's Kerri Panchuk recently sat down with FBR Capital Markets Managing Director Paul Miller to discuss the Federal Reserve's recent stress testing of the mega banks.

Four of the 19 large banks examined failed to meet at least one of the minimum capital ratios set by the Federal Reserve during the tests.

While attending the 2012 Rethink Symposium in Palm Beach, Miller shared his thoughts on the stress tests, as well as his fears about the moral hazards tied to principal reductions. 

Click here to watch the video.