Posted on 06/23/2016 10:48:30 PM PDT by Olog-hai
The largest U.S. financial institutions have enough armor to withstand the turmoil of a major and prolonged national and global recession, the Federal Reserve said Thursday.
The central bank’s annual “stress tests” show that the 33 largest financial institutions — including JPMorgan Chase, Citigroup, Bank of America and Wells Fargo — all hold more capital than at any time since the 2008 financial crisis. They also hold enough capital that, even if faced with billions of dollars in losses from loans as a result of an economic crisis, they would continue to function.
The stress tests were created in the wake of the financial crisis and subsequent Great Recession. The implosion of the housing market led the U.S. into its worse economic downturn since the Great Depression. Several large banks failed or were bought in rescue operations. The losses were so great that U.S. taxpayers had to come to the rescue, at a cost of $700 billion. To keep that from happening again, Congress passed the Dodd-Frank financial reform laws in 2010. …
(Excerpt) Read more at hosted.ap.org ...
So now they have enough deposits in them to raid them Greece style in the name of equal distribution, right?
Glad everything is fine and dandy. And to think, some people were worried...
bkmk
How ‘bout the Bank of the U S of A? Assets vs. Liabilities, etc.? Present value of future costs?
Trillions, you say?
/s
Bank of America? Seriously? That must be a test a corpse could pass.
“They also hold enough capital that, even if faced with billions of dollars in losses from loans as a result of an economic crisis, they would continue to function.”
Are the people so stupid to actually believe this statement? Just another dose of Orwellian propaganda to sooth the fears of the Proles. Doublespeak.
The “stress tests” must not be very stressful.
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