More on the Fed Stress Tests: The exams measured to make sure banks' Tier 1 Common Ratio...

More on the Fed Stress Tests: The exams measured to make sure banks' Tier 1 Common Ratio remained above 5% in the Fed's "severely adverse" economic scenario - GDP falling 5%, the UE rate rising to 12%, a 50% fall in stocks, and recessions overseas, among a number of other variables. This table shows the results, with GS and MS just passing, and BAC, C, WFC, and JPM getting by with a little more room.

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Comments (6)
  • Ted Bear
    , contributor
    Comments (700) | Send Message
    Oh please...


    It is real easy.


    Put the derivatives and the mortgages on the balance sheet.


    Mark themn to market.


    Caluclate your ratios. Expunge the dead.


    Why do we bother to go through these excercises if we choose not to count ALL the assets and liabilities?


    (oh, i forgot. we're in the 'pretend' economy. shhh......)
    7 Mar 2013, 05:08 PM Reply Like
  • benitus
    , contributor
    Comments (3282) | Send Message
    This stress test is a whole load of bull. Just to justify the additional staff and highly over-paid, creating work for nothing, simply to make them feel important and making the rest of us miserable, with pins and needles. The economy and banking industry have survived for so long without such crap, so why the need for them now? Simply an excuse to tie down the banks with stupid restrictions.
    7 Mar 2013, 08:47 PM Reply Like
  • AchaninUSA
    , contributor
    Comments (45) | Send Message
    I heard BAC's exposures in option trading was moved to retail (commercial) banking ledger. Glass–Steagall Act was repealed through the Gramm–Leach–Bliley Act, Bill signed off on the coup-de-grace.
    I've never been to Las Vegas... maybe I should.
    8 Mar 2013, 06:05 AM Reply Like
  • gap123
    , contributor
    Comments (295) | Send Message
    Am I incorrect in thinking with $MS that less capital reserve means more working capital, to equate greater ROE? I would think that is a good thing for P/E. Was AH an over reaction?
    8 Mar 2013, 12:35 AM Reply Like
  • BlueOkie
    , contributor
    Comments (10228) | Send Message
    Why do we need a stress test if Uncle Sugar is going to bail them out anyway?
    8 Mar 2013, 08:35 AM Reply Like
  • june1234
    , contributor
    Comments (4340) | Send Message
    They all know if any of em had to report their derivatives exposure($639 trillion swaps markets according to none of em would not qualify for a listing on the Vancouver exchange
    9 Mar 2013, 06:56 AM Reply Like
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