Banks told by Fed to test for 12% unemployment

Market Watch ^ | 11/15/2012 | Ronald D. Orol

[Obadiah]

The Federal Reserve is asking 30 big banks to make sure their capital can withstand a deep recession in which the unemployment rate rises to 12%.

The Fed, which first required big banks to conduct “stress tests” in 2009, laid out three scenarios lenders have to test against. The goal is to ensure that the firms have enough capital to continue operations during stressful economic times.

[bayouranger]

Rules of Fiscal Cliff club: 1st RULE: You do not talk about Fiscal Cliff. 2nd RULE: You DO NOT talk about Fiscal Cliff. 3rd RULE: If some banker says "stop" or goes limp, taps out the Fiscal Cliff is over for the banker but not the people effected. 4th RULE: Only two jackals from Jekyll Island to a Fiscal Cliff. 5th RULE: One Fiscal Cliff at a time.... 6th RULE: No morals, no honor...jackals code..haha..suckers. 7th RULE: Fiscal Cliffs will go on as long as they have to. 8th RULE: If this is your 1st time at Fiscal Cliff, you HAVE to fail. No worries...it's all fiat anyway.

[Flick Lives]

12% unemployment; the new normal. Then Obama can fudge the number down to 11.8% unemployment just before he runs for this 3rd term; because there is just so much more that needs to be done.

[ilgipper]

That damn Bush guy. Will it never end.

On a side note, at some point, I wish Bush would go on a major comedy show...Tonight Show or similar, and just make some sort of funny comment about being blamed for the world’s every ill. It would resonate.

[usconservative]

At this rate we’ll be there before Christmas.

You have no idea how close to the truth you are.

I work at one of the big-30 banks in this country. This story is FACT. We've had the regulars in our bank 3 weeks running now looking at our loan portfolio's.

When it gets UGLY, it's going to get VERY ugly in a big hurry. Pay attention to all the layoff notices. What's going on with Hostess right now is going to seem like small potato's by the end of January.

[Secret Agent Man]

Yup ohole really is turning things around.

[Wyatt's Torch]

Not sure in see the issue here. I run financial/economic models for a living and we insistently run “worst case scenarios” to see where we would be from a very poor economic environment. Pretty standard stuff here.

[gotribe]

So which is it, Ben: the banks have enough capital to lend but aren’t or they need to hang onto their capital because your QE is an epic fail about to slam us?

[Karliner]

HOO RAH Obama won the election, do the shackles hurt yet? Get ready because either he implodes or it’s going to get a heck of a lot worse. God help us. We need real leaders. Danged if this wasn’t the 18th or even 19th century when duals and hanging scumbags was a rule of law.

[ReaganGeneration2]

This method of pumping (fake) $ into the banks (not printing directly) has never been tried in history at this massive scale. At least monopoly money is paper. This is $2T of.... bits.

The stress test is to test the waters for the fiscal cliff.

[onyx]

B T T T ! ! ! ©

[cowboyusa]

Our Federal Govenment has been taken over by Globalists and Obama is there willing puppet. The Birchers were dead on right.