Zero Hedge: Stress Test Results Leaked?.
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.
I’m really tired of witnessing these robber barons of teh type Gilded Age being called socialists! It’s ridiculous.
By: Maui Porter on April 20, 2009
at 11:00 am
That’s because they are.
By: creativedestructionblog on April 20, 2009
at 12:35 pm
if this is not preposterous – then what is?
Oh no.. i am sorry.. this line has been used so many times.. so.. how about this:
” -”
which one of the above – is the one – symbol we need to tattoo? -> or
and
-> But -> because -> ” while we are ready to roll our sleeves – take the heat – and get ready for that call being made – that nation building et all.. -> perhaps – it would be nice if we can have a JOB? “
OR are we supposed to bite our nails and question our won – wallet-felt- dismay?
cheers
olga shulman lednichenko
here is the entire post: http://lednichenkoolga.wordpress.com/2009/10/31/the-greatest-generation-versus-ours-the-lost-generation/
By: Olga shulman lednichenko on October 31, 2009
at 2:03 am