Yet another Obama success:
Conservative spin 3...2...1...
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 PricewaterhouseCooperss 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 industrys 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...