Federal Reserve says most major US banks can survive a market crash

[Sallow]

Yet another Obama success:

US big banks have enough capital buffers to withstand a drastic economic downturn, the Federal Reserve said on Thursday, announcing that 29 out of 30 major banks met the minimum hurdle in its annual health check.

All of the big banks except for Zions Bancorp stayed above the 5% requirement for top-tier capital in the latest round of stress tests. “The only results that are more nerve racking than stress test results for bankers are their bonus results,” said Dan Ryan, head of PricewaterhouseCoopers’s financial services advisory practice.

The tests aim to show how banks would weather a financial collapse similar to the 2007-2009 crisis. Banks had to show how they would cope with a halving of the stock market, and the eight largest banks had to weigh the impact of the default of their biggest trading counterparty.

Stress tests are closely watched by financial markets as a sign of the industry’s health, and also because the Fed can reject banks’ plans to return capital to shareholders if they think the banks are not strong enough to carry them out.
Federal Reserve says most major US banks can survive a market crash | Business | theguardian.com

Conservative spin 3...2...1...

 

[Moonglow]

Then no more bailouts??? What will the rich and powerful do to the American taxpayer for helping them out? Check cashing fees for non members???

 

[Sallow]

Then no more bailouts??? What will the rich and powerful do to the American taxpayer for helping them out? Check cashing fees for non members???

They'll keep pushing for undoing the regulations that got us to the point that banks can survive another meltdown.

Of course.

What do you expect? It's "communism".

 

[Moonglow]

Then no more bailouts??? What will the rich and powerful do to the American taxpayer for helping them out? Check cashing fees for non members???

They'll keep pushing for undoing the regulations that got us to the point that banks can survive another meltdown.

Of course.

What do you expect? It's "communism".

I thought it socialism....but that's just what the blue baby faces are yelling.

 

[Sallow]

Then no more bailouts??? What will the rich and powerful do to the American taxpayer for helping them out? Check cashing fees for non members???

They'll keep pushing for undoing the regulations that got us to the point that banks can survive another meltdown.

Of course.

What do you expect? It's "communism".

I thought it socialism....but that's just what the blue baby faces are yelling.

Wait no, it's fascism.

That's it.

Banks having to have cash on hand to cover it's losses is UN-Constitutional.

Those bucks should be used for executive bonuses!

 

[Sallow]

Guess no one is upset about this.

No OUTRAGE!!!!!!!

 

[Delta4Embassy]

Yet another Obama success:

US big banks have enough capital buffers to withstand a drastic economic downturn, the Federal Reserve said on Thursday, announcing that 29 out of 30 major banks met the minimum hurdle in its annual health check.

All of the big banks except for Zions Bancorp stayed above the 5% requirement for top-tier capital in the latest round of stress tests. “The only results that are more nerve racking than stress test results for bankers are their bonus results,” said Dan Ryan, head of PricewaterhouseCoopers’s financial services advisory practice.

The tests aim to show how banks would weather a financial collapse similar to the 2007-2009 crisis. Banks had to show how they would cope with a halving of the stock market, and the eight largest banks had to weigh the impact of the default of their biggest trading counterparty.

Stress tests are closely watched by financial markets as a sign of the industry’s health, and also because the Fed can reject banks’ plans to return capital to shareholders if they think the banks are not strong enough to carry them out.
Federal Reserve says most major US banks can survive a market crash | Business | theguardian.com

Conservative spin 3...2...1...

And they're having this discussion because...? (Transfers funds off-shore.)

 

[GISMYS]

WAKE UP!!! The FED is printing 74 billion +$$$$$$$ per month backed by nothing,this cannot go on much longer!!

 

[TakeAStepBack]

How is this an OBama success, Hack?

First of all, the indicators used are in line with the typical reserve balances that we've been under for decades. And even more ironic, is that the federal reserve has some 6 trillion dollars on its balance sheet from eating the leverage of the big banks by printing money, then buying assets and keeping the newly printed money in reserve on authoirty.

Essentially, the federal reserve is either going to get away with one of the largest accounting tricks ever seen, or they are going to be forced to reverse repo those assets. Putting the banks they've been cushioning right back where they were.

And even more over, they are making these indicators known to aleviate the reality that they are going to be raising interest rates and causing another severe market downturn when they do it.

 

[LordBrownTrout]

Lol. Same thing said back in the great depression.

 

[Sallow]

How is this an OBama success, Hack?

First of all, the indicators used are in line with the typical reserve balances that we've been under for decades. And even more ironic, is that the federal reserve has some 6 trillion dollars on its balance sheet from eating the leverage of the big banks by printing money, then buying assets and keeping the newly printed money in reserve on authoirty.

Essentially, the federal reserve is either going to get away with one of the largest accounting tricks ever seen, or they are going to be forced to reverse repo those assets. Putting the banks they've been cushioning right back where they were.

And even more over, they are making these indicators known to aleviate the reality that they are going to be raising interest rates and causing another severe market downturn when they do it.

Say what?

http://www.thompsoncoburn.com/Libraries/Alerts/DoddFrank_BankCapitalRequirements_FINAL_PRINT.pdf

Thompson Coburn LLP |One US Bank Plaza | St. Louis, MO 63101
Dodd-Frank Act Summary
on
Bank Capital Requirements
The Dodd-Frank Act requires some significant changes to capital requirements for
banking organizations. Your company should evaluate these changes to determine
the impact on your capital structure and capital needs.
Holding Companies Must Meet Bank Capital Standards on Consolidated Basis
The Act requires the federal regulators to establish consolidated capital requirements
for any type of depository institution holding company (e.g., bank holding
companies, thrift holding companies, financial holding companies) that are not less
than the federal regulatory capital requirements for depository institutions. These
requirements will include minimum leverage and risk-based capital standards. (See
below regarding the impact of these standards on trust preferred securities
(“TRUPS”) used as capital.

Polly want a cracker?

 

[TakeAStepBack]

So you're pointing to a regulatory bill when regualtors and the SEC failed to do their job when the last time the federal reserve tanked the economy with their progressive inflationary monetary policy?

Surely you jest. The Dodd-Frank is about consolidaiton of regulation, creating a new agency for consumer protections and oversight. The capital requirements mean nothing and it's the same thing we've been doig for decades. The formula change on capital requirements wont touch, change or fix the systemic problems with our financial system. it's a band aid over a skin cancer sore. Useless.

but you're not very bright, so We can be sure you'd come out with "thanks Obama."

 

[C_Clayton_Jones]

Yet another Obama success:

US big banks have enough capital buffers to withstand a drastic economic downturn, the Federal Reserve said on Thursday, announcing that 29 out of 30 major banks met the minimum hurdle in its annual health check.

All of the big banks except for Zions Bancorp stayed above the 5% requirement for top-tier capital in the latest round of stress tests. “The only results that are more nerve racking than stress test results for bankers are their bonus results,” said Dan Ryan, head of PricewaterhouseCoopers’s financial services advisory practice.

The tests aim to show how banks would weather a financial collapse similar to the 2007-2009 crisis. Banks had to show how they would cope with a halving of the stock market, and the eight largest banks had to weigh the impact of the default of their biggest trading counterparty.

Stress tests are closely watched by financial markets as a sign of the industry’s health, and also because the Fed can reject banks’ plans to return capital to shareholders if they think the banks are not strong enough to carry them out.
Federal Reserve says most major US banks can survive a market crash | Business | theguardian.com

Conservative spin 3...2...1...

The right doesn't want to hear this, it doesn't conform with the conservative misery offensive.

 

[TakeAStepBack]

Yet another Obama success:

US big banks have enough capital buffers to withstand a drastic economic downturn, the Federal Reserve said on Thursday, announcing that 29 out of 30 major banks met the minimum hurdle in its annual health check.

All of the big banks except for Zions Bancorp stayed above the 5% requirement for top-tier capital in the latest round of stress tests. “The only results that are more nerve racking than stress test results for bankers are their bonus results,” said Dan Ryan, head of PricewaterhouseCoopers’s financial services advisory practice.

The tests aim to show how banks would weather a financial collapse similar to the 2007-2009 crisis. Banks had to show how they would cope with a halving of the stock market, and the eight largest banks had to weigh the impact of the default of their biggest trading counterparty.

Stress tests are closely watched by financial markets as a sign of the industry’s health, and also because the Fed can reject banks’ plans to return capital to shareholders if they think the banks are not strong enough to carry them out.
Federal Reserve says most major US banks can survive a market crash | Business | theguardian.com

Conservative spin 3...2...1...

The right doesn't want to hear this, it doesn't conform with the conservative misery offensive.

More content retardent hackery.

 

[Sallow]

So you're pointing to a regulatory bill when regualtors and the SEC failed to do their job when the last time the federal reserve tanked the economy with their progressive inflationary monetary policy?

Surely you jest. The Dodd-Frank is about consolidaiton of regulation, creating a new agency for consumer protections and oversight. The capital requirements mean nothing and it's the same thing we've been doig for decades. The formula change on capital requirements wont touch, change or fix the systemic problems with our financial system. it's a band aid over a skin cancer sore. Useless.

but you're not very bright, so We can be sure you'd come out with "thanks Obama."

I'm not very bright?



Reagan started the downward slide in deregulation.

Sure we had a "boring" financial sector and Reagan made it "exciting" again.

But heck.

That's expensive.

Maybe you should rethink your stance..

Well that's if you don't like financial collapse.

 

[Zander]

Obama runs the Federal Reserve?

That's a new one!!