Stage-Managed Stress Tests Now a Key Factor in Financial Regulatory System

By: Wednesday October 10, 2012 1:55 pm

I guess I’m supposed to be impressed by this new expansion of stress tests by the financial regulatory apparatus. The biggest U.S. banks will have to run two internal “stress tests” each year and publish some of the results on their websites under new rules that enshrine the examinations as a central plank of postcrisis [...]

Spanish Banks Need 60 Billion Euros in Aid

By: Friday September 28, 2012 12:04 pm

Spain announced the results of a stress test of its banks, finding a €60 billion shortfall, in line with estimates. It’s important to understand that there are two bailouts as it pertains to Spain. The bank bailout, meant to cover this €60 billion shortfall, has already been requested and approved. Europe has reserved around €100 [...]

Dimon’s Jerk Move Leads to Early Release of Fed’s Stress Tests

By: Tuesday March 13, 2012 1:55 pm

The Federal Reserve, which released the details of its Federal Open Market Committee meeting today (no changes to monetary policy), did not plan on also releasing the results of their stress tests today. But they did in a hurry just a few minutes ago. The reason why is indicative of the incredible arrogance on the [...]

Banks Poised to Pass Another Round of Bank-Designed Stress Tests

By: Monday March 12, 2012 11:35 am

At a time when the government will release banks from their shameful conduct in the mortgage industry, they are also conducting stress tests to determine the financial health of those same banks. Given government policy that protects and coddles the banks, I would imagine the health to be shown as pretty darn good. And indeed, [...]

Banks Want to Stop Disclosure of New Round of Stress Tests

By: Monday March 5, 2012 9:35 am

Not only do Too Big to Fail banks want an implicit guarantee against their demise, not only do they want free money from the government to prop them up, but they also want as much secrecy as possible about their operations and their finances. That’s at the heart of this latest push to get the [...]

Dexia Failure Could Be An Early Warning Signal

By: Wednesday October 5, 2011 6:23 am

Spain actually nationalized a couple of its banks over the weekend, but the failure of Dexia, co-owned by France and Belgium, is a bigger deal. The sudden concern over Dexia, which is heavily invested in European government bonds whose value is now in doubt, highlighted the threat that euro-zone bank failures could trip up the [...]

Suskind Book: Geithner Blew Off Order to Consider Unwinding Citigroup

By: Friday September 16, 2011 7:30 am

I think this story about Tim Geithner and Citigroup falls under the realm of gossip, but it’s pretty important gossip, so let’s take a look at Ron Suskind’s claim: A new book offering an insider’s account of the White House’s response to the financial crisis says that U.S. Treasury Secretary Tim Geithner ignored an order [...]

Bank of America Death Watch: Nationalization Creeps Into the Picture

By: Tuesday August 23, 2011 12:18 pm

Yves Smith continues the Bank of America death watch today. Despite a large stock market gain, BofA is down another 4% at this hour, and off well over 50% from its 52-week high. The current market capitalization is just $62 billion, despite a book value between $215-$222 billion. That’s astonishing, and it suggests that investors [...]

European Bank Stress Tests: Eight Banks Fail

By: Friday July 15, 2011 3:14 pm

European banks were put through a series of stress tests today. And eight banks failed, while another 16 only passed narrowly. Eight banks flunked the European Union’s “stress tests,” with a combined shortfall of €2.5 billion ($3.54 billion) in capital under a simulated worst-case economic scenario, the European Banking Authority said. The EU regulator said [...]

Federal Reserve Won’t Release New Stress Tests, Say Some Banks Passed

By: Friday March 18, 2011 11:02 am

In case you thought we were living in an open democracy, here’s a press release from the Federal Reserve on a recent round of stress tests commissioned to test banks. The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the [...]

Banks Writing Their Own Stress Tests

By: Thursday March 3, 2011 12:10 pm

You may not know that there’s a new round of stress tests for the banks on the horizon. The Federal Reserve announced these stress tests late last year, designed to determine whether the banks could handle another downturn. The last stress tests were plagued by actual bargaining between the administrators of the tests and the [...]

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