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  • Friday, November 20, 2009, 12:53 PM The Fed is reportedly scrutinizing the biggest banks to ensure they have enough capital to withstand a sudden reversal in asset prices. Supervisors want to know what banks know about the strength of their counterparties, and whether risk managers have any say in bank policies.
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This news story has 6 comments:

  • If they are borrowing money at 0% they have all the money they want... whats the real question?

    Is this a precursor to the fed taking away the punch bowl?
    So if the Fed calls back their loans & they have to liquidate the stock market again can they handle it?
    20 Nov 2009, 01:06 PM Reply Like
  • Now you've got me worrying. Didn't we fix this in the panic of 2008?
    20 Nov 2009, 01:08 PM Reply Like
  • Are they getting worried that the CNBC green shoots are really mold forming.
    20 Nov 2009, 01:08 PM Reply Like
  • Is this financial war games?

    Or, for once, Uncle Sammy just being prudent.
    20 Nov 2009, 01:24 PM Reply Like
  • Fed should just dump these banks and start making money available directly to individuals at 0%. After all it is going to be the tax payers that will have to foot the bill for all the largesse (take at 0% and charge usurious 10% plus on oans) granted to the banks. Why should anyone care if banks survive. They are just parasitic middlemen that suck money from all the parties. Why mess with these useless intermediaries? If the free market thinks a bank adds value they will be engaged at a fee.
    20 Nov 2009, 02:22 PM Reply Like
  • The Fed should review their own account to see if they can survive marking their assets down. At assets to capital exceeding 40 to 1 I seriously doubt it.They currently don't mark their assets down even when it's obvious they have declined in value. I guess that's why Congress has to audit them. Honesty and correct accounting is obviously not their strong point.
    20 Nov 2009, 02:26 PM Reply Like
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