Fed says 4 of nation's 19 largest banks fail 'stress test'

Discussion in 'Politics' started by Syphon, Mar 13, 2012.

  1. Syphon
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    Syphon BANNED

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    Four major U.S. banks failed to show they have enough capital to survive another serious downturn, the Federal Reserve said Tuesday. The list included Citigroup, the nation's third-largest bank

    SunTrust, Ally Financial and MetLife joined Citi in failing to meet the test's minimum capital requirements.

    The Associated Press: Citibank, 3 others fail Fed stress test; 15 pass

    hmmmmm guess the banks cant regulate themselves very well after all....
     
  2. OtaniKitano
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    OtaniKitano Active Member

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    If Glass-Steagal had not been repealed in 1999 (signed off by Clinton) through Gramm-Leach-Bliley this mess would never have happened, much less continued. I'm surprised B of A isn't in the fail list. Their misery has practically become a nightly column in the WSJ.
     
  3. Syphon
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    agreed, but apparently the GOP still think Glass Steagall was a terrible idea and the financial markets are better regulating themselves. that turned out so well until the crash that is.... it didnt even last 10 years.
     
  4. Syphon
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    wow, no one actually cares that banks are failing the stress test....
     
  5. g5000
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    g5000 Diamond Member

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    I care. I care very much.

    This subject is my number one obsession. :D
     
  6. g5000
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    LTCM was "too big too fail", too. Remember them?

    When Long Term Capital Management screwed up and nearly brought down the world financial system in 1998, the US government rescued it. But that entailed selling off the pieces/parts of LTCM to other financial houses. LTCM paid the ultimate market price for its failure. As it should be.

    An interesting sidenote to LTCM's collapse is that Bear Stearns refused to participate in the LTCM bailout. Bear Stearns was always a bunch of cowboys and they felt LTCM got what it deserved.

    And that is why when Bear Stearns got into trouble in 2008, no one came to its rescue.

    Poetic justice.

    This time around, all the too big too fail financial houses crashed simultaneously a few months after Bear. There was no one left to buy all the pieces/parts. Sure, Chase got Washington Mutual's pieces/parts. Did you know WaMu was, and still is, the largest bank failure of all time?

    Wells Fargo got Wachovia. Bank of America was going to buy Lehman, but Lehman dicked around too long so BofA got Merrill Lynch.

    But there was no one left to buy Lehman, or Citi, or Goldman, or Iceland, or Ireland, or Scotland, or Morgan. So they had to be propped up. Except Lehman.

    But I think it is time to start unwinding some of these bastards.
     
    Last edited: Mar 13, 2012

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