So you have probably heard the bank stress tests are over. Do the results put you at ease, or are you still stressed out?
“While the goal of the months-long exercise was to calm fears of another big bank failure, it may end up doing the opposite,” John W. Shoen of MSNBC said.
10 of the 19 banks tested by the government were told they need to raise more capital so as not to crater from continued expected losses. Here are the banks that need to raise more capital:
Bank of America–$34 billion; Citigroup–$5 billion; GMAC LLC–$11.5 billion; Wells Fargo–$13.7 billion. Morgan Stanley–$1.8 billion; Regions Financial Corp–$2.5 billion.
Bank of New York Mellon, American Express Co., Capital One Financial, Goldman Sachs, JPMorgan Chase and MetLife were told they need not raise more capital.
So, my question to you is what do you make of all this? Was it needful that the government perform these stress tests? Will it help? How might actions that will be taken as a result affect the economy?
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| Source: U.S. Treasury* Est. losses are for 2009-10, based on ‘adverse’ economic scenario | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I think it’s was a necessary that government presents such help,even if its results are not appeared completely.