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The Fed announces the completion of its stress test analysis of 19 big banks, clearing the way...

The Fed announces the completion of its stress test analysis of 19 big banks, clearing the way for some to increase dividends and buy back shares. Methodology included a requirement that banks test their revenue and capital against three different economic outcomes, including a severe recession in which unemployment rises to 11%. KBE +1.2%.
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Comments (4)
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    It's my understanding, that some believe that real unemployment is well over 11% at present.

     

    Are they that confident there is no downside from here?
    18 Mar 2011, 11:55 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "...including a severe recession in which unemployment rises to 11%."

     

    Huh? Aren't we just about there now with our current "recovery?"

     

    If Burger King closes a restaurant we're going to be pushing 11%. Was that such a difficult test?
    18 Mar 2011, 11:58 AM Reply Like
  • bbro
    , contributor
    Comments (9837) | Send Message
     
    The other hurdles were rigorous...
    18 Mar 2011, 01:34 PM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    As Zerohedge noted earlier this month: "Wonder why the unemployment rate is at an artificially low 8.9%? Three simple words: Labor Force Participation. At 64.2%, it was unchanged from last month, and continues to be at a 25 year low. Should the LFP return to its 25 trendline average of 66.1%, the unemployment rate would be 11.6%."
    18 Mar 2011, 06:16 PM Reply Like
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