Bank Stress Test Results Leaked?
April 20, 2009
The Turner Radio Network has released what they say are results of the 19 bank stress test:
The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.
1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent.
2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans.
3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.
4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.
5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular – JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank – taking especially large risks.
6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital!
7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!
The debt crisis is much greater than the government has reported. The FDIC`s “Problem List” of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.
Put bluntly, the entire US Banking System is in complete and total collapse.
Source: Turner Radio Network
Hat Tip to Zero Hedge
Tread lightly here folks, because the veracity of this report has yet to be established. Nevertheless, this is entirely plausible.
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2 Responses to “Bank Stress Test Results Leaked?”
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The FDIC has to borrow from Treasury or it would be broke,so the treaury calles the Fed.The US Debt is not truthfully protrayed by the Corp owned Fnews-MSM?why,it would expose the real economic woes of not only the world,but what the US has yet to see in the front pages of News outlets of the Nation.While the UK news outlets are doing the same,cooking the books,the UK is more trouble than its partner in the US. Google “Martin Armstrong” or visit http://www.jsmineset.com, you will find un-censored news & facts to back up their sourses. Expect US Banks to ask for more Tax Payers Monies to fund their Bets they are Leveraged at 30:1,50:1 & some higher. Go to http://www.BIS.com to see the Quad-Trillions in Derivatives these Bankters have put at risk without thinking of the fallout to the US & World Economy. This resulted in trillions being sucked from retirement & 401Ks plans in the US,now the next shoe is about to drop like a rock & the Fed is at its limits,because of the Obama blind leading the blind economic plan. Get ready to see our un-free manipulated markets hit new highs as the suckers rally is about to wipe out trillions more for the Bankters to cover their losses,but it will not come close,so inflation is the Feds next trick to get more dollars into the bankers coffers,but all those dollars in the vaults of GS,HSBC,JPM are now almost worthless paper backed by nothing,unless they can somehow exchange them for Gold Bullion. Go to Goldseek.com for many great articles about the Feds,FDIC,SEC,CFTC & the Banks that are in dire conditions due to their continueing operations that brought on the 1st crash. Its time to let these banks GS,HSBC,JPMC, fail & be broken up into tina parts. Plus the Congress should require all that took part in TARP,REPAY ALL MONEY PAID OUT as BONUSES,MONIES that was funneled by AIG to off shore banks & Banks(GS,ie’)in the US,plus all the money made by market Manipulation in the Gold & Silver by GS & JP Morgan.
The FDIC will raise the amount of FEES smaller banks pay the FDIC to pay to those that are closed on Fridays. Good Banks that did nothing wrong are back stopping the failed Bets of the Big Boys Club of Banksters & the Congressmen/ladies that have been so close to the center of this meltdown.
Mickey, thanks for your comments. I haven’t checked out the links you posted, but you raise some interesting points.
I don’t have time to elaborate, but I’ll just bullet point a few of my thoughts:
1. The current market rally is incredibly misguided. On the whole, we’re still just whistling past the economic graveyard.
2. The federal government is engaging in the very practices that put the banks in the place they’re in today – dire consequences await.
3. The stress test was a joke. Look for the pace of bank failures to accelerate.