"I mean, everyone agrees with stress tests for banks. I mean that's clear. But banks should do that on their own. And they should worry about their own capital functioning. That's what they should do. It shouldn't be a government function"

This quote by Arthur Laffer suggests that banks need to be responsible for their own stress tests and capital performance, rather than depending on the government to do it for them. He believes that everybody agrees that stress tests for banks are essential, but that the banks themselves should be the ones to take the effort and guarantee that their capital is working effectively. This remains in contrast to the federal government taking on the obligation of conducting stress tests and keeping track of the capital of banks. Laffer's point is that banks need to be held responsible for their own monetary health, and that the federal government needs to not be the one to take on this obligation. This might assist to guarantee that banks are much better prepared for any potential monetary crisis, and that the government does not have to step in and take control.