Old Project Avalon Forum (ARCHIVE) - View Single Post - Bank Stress test results may cause panic scenario

peaceandlove · 05-07-2009, 07:09 PM

All stress test banks are solvent: Bernanke

By Mark Felsenthal and Alister Bull – 2 hrs 52 mins ago

WASHINGTON (Reuters) – All of the top 19 U.S. banks undergoing "stress tests" to gauge their ability to outlast an even deeper recession are solvent, and the exam results should reassure markets that banks can continue lending, Federal Reserve Chairman Ben Bernanke said on Thursday.

The results of the stress tests are due to be announced in detail at 5 p.m. EDT, including which banks are being required to add capital to buffer against a potential sharp downturn in the economy. The exams will establish capital buffers for each of the nation's 19 largest banks and lay out bank plans to boost capital if necessary.

"(This) is not a solvency test," Bernanke said in response to questions after speaking to a conference organized by the Chicago Fed. "All the banks, inclusive of the capital they received from the government, are solvent."

Article continues: http://news.yahoo.com/s/nm/us_usa_fed_bernanke

Interesting comments posted below the following article at C4L!!!

Fed’s Bank Results ‘Reassuring,’ Show No Insolvency

By Rebecca Christie

May 7 (Bloomberg) -- Federal regulators today unveil what Treasury Secretary Timothy Geithner said will be a “reassuring” picture of a U.S. banking system able to withstand whatever stresses the recession may inflict on it once a handful of institutions add to their capital base.

Federal Reserve stress tests on the 19 biggest lenders show Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. together require about $54 billion, said people familiar with the conclusions. At the same time, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of New York Mellon Corp. have enough capital to help prop up flows of credit to businesses and consumers grappling with the worst recession in five decades.

“There is very significant cushions in these institutions today, and all Americans should be confident that these institutions are going to be viable institutions going forward,” Geithner said yesterday in an interview with PBS television’s Charlie Rose program. “The results will be, on balance, reassuring.”

Article continues: http://www.campaignforliberty.com/wire.php?view=4866

05-07-2009, 07:09 PM	#10
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	All stress test banks are solvent: Bernanke All stress test banks are solvent: Bernanke By Mark Felsenthal and Alister Bull – 2 hrs 52 mins ago WASHINGTON (Reuters) – All of the top 19 U.S. banks undergoing "stress tests" to gauge their ability to outlast an even deeper recession are solvent, and the exam results should reassure markets that banks can continue lending, Federal Reserve Chairman Ben Bernanke said on Thursday. The results of the stress tests are due to be announced in detail at 5 p.m. EDT, including which banks are being required to add capital to buffer against a potential sharp downturn in the economy. The exams will establish capital buffers for each of the nation's 19 largest banks and lay out bank plans to boost capital if necessary. "(This) is not a solvency test," Bernanke said in response to questions after speaking to a conference organized by the Chicago Fed. "All the banks, inclusive of the capital they received from the government, are solvent." Article continues: http://news.yahoo.com/s/nm/us_usa_fed_bernanke Interesting comments posted below the following article at C4L!!! Fed’s Bank Results ‘Reassuring,’ Show No Insolvency By Rebecca Christie May 7 (Bloomberg) -- Federal regulators today unveil what Treasury Secretary Timothy Geithner said will be a “reassuring” picture of a U.S. banking system able to withstand whatever stresses the recession may inflict on it once a handful of institutions add to their capital base. Federal Reserve stress tests on the 19 biggest lenders show Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. together require about $54 billion, said people familiar with the conclusions. At the same time, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of New York Mellon Corp. have enough capital to help prop up flows of credit to businesses and consumers grappling with the worst recession in five decades. “There is very significant cushions in these institutions today, and all Americans should be confident that these institutions are going to be viable institutions going forward,” Geithner said yesterday in an interview with PBS television’s Charlie Rose program. “The results will be, on balance, reassuring.” Article continues: http://www.campaignforliberty.com/wire.php?view=4866 Last edited by peaceandlove; 05-07-2009 at 07:18 PM.