The Federal Reserve Bank of New York has been probing major financial firms’ exposure to BP Plc to ensure that if the oil giant buckles under the costs of the Gulf oil spill, it won’t put Wall Street or the global financial system at risk, according to two sources familiar with the matter.

After pouring over documents and asking banks in the last two weeks about their exposure to BP the Fed found no systemic risk and hasn’t asked firms to alter their credit relationships with BP, the sources told Reuters.

“The Fed gave banks’ exposure to BP a passing grade,” said one of the sources on condition of anonymity. Get the full story »