Bank Stress Test Results Announced – $75 Billion Needed
May 7, 2009
American Express Company: no need
Bank of America: $33.9 billion
BB&T Corporation: no need
Bank of New York Mellon: no need
Capital One Financial: no need
Citigroup: $5.5 billion
Fifth Third Bancorp: $1.1 billion
GMAC: $11.5 billion
Goldman Sachs: no need
JPMorgan: no need
KeyCorp: $1.8 billion
MetLife: no need
Morgan Stanley: $1.8 billion
PNC Financial: $0.6 billion
Regions Financial: $2.5 billion
State Street: no need
SunTrust Banks: $2.2 billion
U.S. Bancorp: no need
Wells Fargo: $13.7 billion
Summary Source: Alea
See the whole announcement here: The Supervisory Capital Assessment Program: Overview of Results
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.