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Bank Stress Tests Not Tough Enough

Started by malthus
almost 17 years ago
Posts: 1333
Member since: Feb 2009
Discussion about
http://www.nytimes.com/2009/08/23/business/economy/23gret.html?_r=1 “The stress tests said that through the two-year cycle, big banks had to have enough capital plus earnings to withstand a 9 percent loss rate,” Mr. Whalen said. “But what we’re seeing with the levels of stress in the industry is that we are there now and we are not at peak of cycle yet.” Meanwhile Dick Bove is predicting 150-200 more banks will fail on top of the 81 that already have. This will put further stress on surviving banks to pay up to the FDIC. We had better hope China keeps pumping out that stimulous money...
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