Ai: That $200 billion is in addition to the $599 billion that the 19 stress-tested banks could face if the adverse stress test scenario comes true. Please keep in mind that there were no Stree Tests, it was only “peak in stupidity, irresponsibility and arogance of the government”.
WSJ:
Commercial real-estate loans could generate losses of $100 [...]
WSJ:
“The Federal Reserve significantly scaled back the size of the capital hole facing some of the nation’s biggest banks shortly before concluding its stress tests, following two weeks of intense bargaining.
In addition, according to bank and government officials, the Fed used a different measurement of bank-capital levels than analysts and investors had been expecting, resulting [...]
I think that people need to vote for Ron Paul’s initiative to audit FED and to end this nonsense as soon as possible. Bernard Madoff is where he is and he needs to be joined. He made it on the cost of his client and not on the expense of taxpayers.
Federal Reserve Transparency Act - [...]
Ai: Zero Hedge comments on stress test results. Everything wa clear from the beginnning. Banks are ok.
Stress Tests are over, loan loss provisions will be spread over years, accounting treatment has been relaxed, and nationalization will be left to the Swedes. While Bank of America and Wells Fargo capital needs are larger than expected, they [...]
Dow Jones index, GM replacement: My bet for its replacement is Cisco (CSCO). As hard as it may be to believe in 2009, this internet thingie, which I think will be big one day, is not represented in the DJIA index. Cisco is a manufacturer who makes all of the plumbing for the net. (Berry [...]