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Fed Stress Tests: Ally Financial is the only bank not meeting the Fed standards.  All of...

Fed Stress Tests: Ally Financial is the only bank not meeting the Fed standards.  All of the other 18 holding companies showed a Tier 1 Common Ratio higher than 5% under the central bank's severe loss scenario.
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Comments (24)
  • into dark shadows
    , contributor
    Comments (338) | Send Message
     
    Shocking!
    Isn't it?
    Not at all!
    All is well, stay calm...
    Buy stock,
    buy more stock!
    7 Mar 2013, 04:40 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Buy what stock? Does Ally Financial have a stock? Yahoo Finance says ALLY FINANCIAL is (ALFI). Is that right?
    7 Mar 2013, 11:07 PM Reply Like
  • Blutopaz
    , contributor
    Comments (94) | Send Message
     
    ....to M. Bryant.....buy KEY....today.......or yesterday......BluTopaz.
    8 Mar 2013, 07:03 AM Reply Like
  • Blutopaz
    , contributor
    Comments (94) | Send Message
     
    .....M. Bryant.....or STI.....both KEY and STI should give you 20% by Memorial Day....Why would anyone buy a $900 dollar bank like ALFI..??.....BluTopaz.
    8 Mar 2013, 07:07 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    KeyCorp (KEY) - http://yhoo.it/13NyNUQ
    SunTrust Banks (STI) - http://yhoo.it/13NyQ34

     

    You think they can pass resistance?
    9 Mar 2013, 01:35 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    And thanks for the tickers.
    9 Mar 2013, 01:35 PM Reply Like
  • Devilmaydare
    , contributor
    Comments (82) | Send Message
     
    Please note that GM did not buy the USA portion of Ally Bank, it only bought the assets of Ally Financial in some foreign countries.
    7 Mar 2013, 04:58 PM Reply Like
  • june1234
    , contributor
    Comments (2641) | Send Message
     
    Ally who? .Wonder if they used straws to decide the one that failed. With the markets breaking new ground I like the ones that passed while still trading waaaaay below their pre 08 highs. They had to pick somebody to fail this test like they did with Lehman. I still recall their former CEO saying why us (maybe if he'd been Ben's college roommate?)
    7 Mar 2013, 05:00 PM Reply Like
  • whidbey
    , contributor
    Comments (3391) | Send Message
     
    "All of the other 18 holding companies showed a Tier 1 Common Ratio higher than 5% under the central bank's severe loss scenario. "

     

    So.... all but one are 5% better than the Fed loss ratio? Does that mean anything? Read the severe loss scenario; it is hardly equal to what happened in 2008. Are we being played with.... again?
    7 Mar 2013, 05:37 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    They should be at least 5000% higher. But even then the long tail risk will remain. I am selling everything tmrw.
    7 Mar 2013, 07:01 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Stop whining you cynics.

     

    US banks are in good and some are in excellent conditions.

     

    They got very cautious after 2008 (when most loans have been since), and are close to working off legacy junk assets.

     

    Even the super bad banks Fannie and Freddie are making money now. A few more years down the road, even these two will recover their equities and pay off the government.
    7 Mar 2013, 06:51 PM Reply Like
  • june1234
    , contributor
    Comments (2641) | Send Message
     
    I can tell by BAC , CITI and MS's stock prices what condition they're in and I have no doubt 2 of them at least can power forward.If any of them had to report their derivatives exposure I don't believe any of em would even be listed on the Vancouver exchange
    7 Mar 2013, 07:54 PM Reply Like
  • toomuchgas
    , contributor
    Comments (601) | Send Message
     
    There are still a lot who haven't paid off the government and who are owned by the government including Ally.
    7 Mar 2013, 08:29 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Plus they have all the cash from the bailout. Banks haven't loaned it all out yet.
    7 Mar 2013, 11:14 PM Reply Like
  • benitus
    , contributor
    Comments (1960) | Send Message
     
    Ally bank used to be GE Money Bank, if I'm not wrong, so I don't know whether are we talking of the same Ally? They're the ones who used to finance all kinds of purchases.
    7 Mar 2013, 08:50 PM Reply Like
  • Brad Kenagy
    , contributor
    Comments (1585) | Send Message
     
    As noted on CNBC today, US Bank stress test DO NOT take into account what would happen to derivatives held by banks. Where as European bank stress tests include derivatives in their stress tests.
    7 Mar 2013, 09:47 PM Reply Like
  • banker ted
    , contributor
    Comment (1) | Send Message
     
    BBT is a great bank. it was not involved in sub prime lending. never failed to make a profit even through the financial crisis. increased dividends twice since given fed approval. paid an extra .23 cent dividend 03/01/13 and its tier 1 level is stellar. most financial analysts will tell you it is probably the best managed bank in the US. why do so many people continually pick on BBT?
    8 Mar 2013, 03:36 AM Reply Like
  • Phr3d
    , contributor
    Comments (242) | Send Message
     
    glad you all got a chance to vent, hehe.
    8 Mar 2013, 04:32 AM Reply Like
  • mg1947
    , contributor
    Comments (2) | Send Message
     
    buy BAC now! it is on the path to $20.00 by year end.
    8 Mar 2013, 06:30 AM Reply Like
  • User 856198
    , contributor
    Comment (1) | Send Message
     
    And Ally pays the highest savings rate.
    8 Mar 2013, 06:35 AM Reply Like
  • j1stoner
    , contributor
    Comments (27) | Send Message
     
    Wonder why? Because they have to.
    9 Mar 2013, 07:24 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Is that because no one would put their money in the bank if the interest rate is not high enough for the risk?

     

    But I think there is no risk. The Fed guarantees individuals up to $100,000 if a bank fails. So I would take advantage of the interest while you still can. Wish I bought Greek bonds a year ago.
    10 Mar 2013, 09:17 PM Reply Like
  • benitus
    , contributor
    Comments (1960) | Send Message
     
    Michael, if I'm not wrong, the Fed guarantee has been revised recently to $250,000.
    11 Mar 2013, 10:06 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Thanks for letting me know!!! That's even better.
    11 Mar 2013, 11:14 AM Reply Like
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