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Tightening oversight: America's 19 stress-test banks are headed for another capital review for...

Tightening oversight: America's 19 stress-test banks are headed for another capital review for "adverse" circumstances by early 2011, under conditions set by the Fed. The central bank also laid out guidelines for those firms that want to return cash to shareholders through dividend hikes or buybacks, to determine whether they hold sufficient capital to do so.
Comments (5)
  • Stone Fox Capital
    , contributor
    Comments (6738) | Send Message
     
    most of those banks are awash in capital. Seems over board to have higher standards.
    17 Nov 2010, 02:19 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    And perhaps the Fed should issue guidelines about giving cash to executives via bonus (yeah, right).

     

    By the mark-to-myth accounting rules currently in place, these institutions are highly profitable and they are handing out record bonuses.

     

    By mark-to-market accounting standards many of these firms are insolvent and their executives should be unemployed.

     

    Perhaps we should use mark-to-market when it comes to awarding bonuses?
    17 Nov 2010, 02:22 PM Reply Like
  • bbro
    , contributor
    Comments (10148) | Send Message
     
    The banks will pass these tests...5% tier 1 common to risk weighted assets...this test is even more stringent than the last one...credit
    profiles are considerably stronger than 2 years ago...question will
    be will they use the highest 2 year chargeoff rate in history (even
    greater than the Depression) like last time....
    17 Nov 2010, 03:38 PM Reply Like
  • bbro
    , contributor
    Comments (10148) | Send Message
     
    BAC 10 year still 250 spread....
    17 Nov 2010, 03:42 PM Reply Like
  • j_remington
    , contributor
    Comments (1343) | Send Message
     
    another mark-to-fantasy exercise
    17 Nov 2010, 04:19 PM Reply Like
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