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Stress Tests Conclusion: Banks Are Stressed! « The Washington Independent

Jul 31, 2020
Some of the nation’s 19 largest banks have substantially reduced capital as a result of the recession and the mortgage crisis, the Federal Reserve’s stress tests show, according to Bloomberg.At the same time, most banks have more than enough reserves on hand to cover any potential losses, the Fed’s paper describing the stress tests said.
The paper, part of a federal effort to restore public confidence in banks by gauging their capital strength, doesn’t reveal which banks need capital or specify their total shortfall. The Fed used qualitative terms such as “some” and “more,” typical of other central bank documents.
Clearly, the Fed is avoiding specifics at this point. Until we get more than this, it will be hard to determine how geniune the Fed’s promise of transparency is going to be. Another report is expected May 4.
Camilo Wood

Camilo Wood

Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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