Fed to Apply Stress Test to Six Big US Banks

[Javaman]

http://www.cnbc.com/id/45405771

The Federal Reserve announced plans for a new round of stress test on US banks—including the six largest—to see if they could withstand a possible market shock, such as an escalation of the European debt crisis.

The Fed said its global market shock test for those banks will be generally based on price and rate movements that occurred in the second half of 2008, and also on "additional stresses related to the ongoing situation in Europe.''

The six big banks to be tested are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. The heightened stress test for those banks are part of a larger supervisory test the Fed will conduct on 19 firms' capital plans.

The Fed's review of those plans will determine whether the banks can raise dividends or repurchase stock. The banks must submit their capital plans by Jan. 19, 2012.

more at link...

[hobbit709]

1. But, but, but. They're the ones that are "TOO BIG TO FAIL"

Or so the clowns in charge keep telling us.