Bank stress tests results leaked

[BlackVoid]

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.
....

There is more here:
http://turnerradionetwork.blogspot.c...st-reults.html

[Rajiv]

Re: Bank stress tests results leaked

Itulip does not like this source -- so it has been moved to Rant and Rave

[metalman]

Re: Bank stress tests results leaked

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.
....

There is more here:
http://turnerradionetwork.blogspot.c...st-reults.html

why quote a friggin nutjob like turner when a credible older source is available?

[LargoWinch]

Re: Bank stress tests results leaked

Itulip does not like this source -- so it has been moved to Rant and Rave

Rajiv, I was not aware you were an admin.? Are you posting on behalf of FRED as well?

Feels like I am exchanging ideas with Deep Blue sometimes... (especially considering how fast Lukester can type ;)).

[Rajiv]

Re: Bank stress tests results leaked

Just "Deep Blue" running "Fred Emulation Display" (FED) ;)

[GRG55]

Re: Bank stress tests results leaked

why quote a friggin nutjob like turner when a credible older source is available?

Here's another allegedly credible source pontificating today about the stress tests...

Geithner Says Banks Will Have ‘Options’ for Boosting Capital


April 21 (Bloomberg) -- Treasury Secretary Timothy Geithner said banks found to need additional capital at the conclusion of regulators’ stress tests will have a range of options for shoring up their balance sheets.

The Treasury chief, testifying before a congressional oversight panel today, said lenders will be able to take taxpayer money, raise funds from private investors or convert previous government investments from preferred to common shares. Each bank can chose the “best mix” of alternatives and will likely make different choices, Geithner said...

...In a prepared statement for the hearing in Washington, Geithner said “the vast majority of banks have more capital than they need to be considered well capitalized by their regulators.”...

More capital than they need, eh...:rolleyes:

This might some day rank right up there with "sub-prime is contained" and "there's no housing bubble".

[WDCRob]

Re: Bank stress tests results leaked

"Vast majority" you see.

Just not the biggest 5%.

[LargoWinch]

Re: Bank stress tests results leaked

More capital than they need, eh...:rolleyes:

This might some day rank right up there with "sub-prime is contained" and "there's no housing bubble".

I now have to cancel my idea about a "Where is GRG55" thread...

Welcome back sir.