Four large US banks fail stress tests

[PA Democrat]

Source: AFP

Citigroup was one of four large US banks that flunked stress tests aimed at seeing how they would hold up in a new economic crisis, Federal Reserve data showed Tuesday.

Three others -- Ally, Suntrust and MetLife -- also failed the tests, while 15 other large bank holding companies passed the exercise, the Fed said.

As a group, though, the 19 came through strongly, said the Fed, thanks to pressure for them to boost capital over the past three years as the financial sector digs its way out of the deep 2008-2009 recession.

"In fact, despite the significant projected capital declines, 15 of the 19 bank holding companies were estimated to maintain capital ratios above all four of the regulatory minimum levels under the hypothetical stress scenario," the Fed said.


Read more: http://news.yahoo.com/citi-ally-suntrust-metlife-fail-stress-tests-205649742.html

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I am surprised that Bank of America received a passing grade.

[mahatmakanejeeves]

1. MetLife is a bank?

I have my dental insurance with them. How did they get to be a bank?

[pkdu]

2. Apparently deregulation has gone so far that local dentists can offer mortgages.... :O) n/t

[MaineDem]

3. That's exactly what I just said out loud.

Deregulation, I guess.

[truthisfreedom]

6. They don't think they're a bank either.

“We are deeply disappointed with the Federal Reserve’s announcement,” Kandarian said. “We do not believe that the bank-centric methodologies used under the CCAR are appropriate for insurance companies, which operate under a different business model than banks.”

http://www.bloomberg.com/news/2012-03-15/metlife-s-capital-austrian-lending-kinnucan-pleads-compliance.html

[Lawlbringer]

4. Yeah, Citibank failed

by like 1/10th of a percent, or something like that. While that seems like a small number, that 1/10th of a percent is more money than I'll ever see in my lifetime.

[99th_Monkey]

5. Re: Bank of America NOT failing is VERY telling, esp. considering this damning RS Story

http://www.rollingstone.com/politics/news/bank-of-america-too-crooked-to-fail-20120314

Very telling that these so-called stress tests amount to pure posturing and should not be taken very seriously.