In worst-case scenario, Fed sees $501 billion in losses at nation’s biggest banks

March 2014ECONOMICS If the economic worst happens—the worst being defined as a deep recession in the United States, steep declines in home prices, and recessions in the euro area as well as Japan—30 major banks in the U.S. would lose a total of $501 billion dollars over nine quarters, according to the latest round of stress testing from the Federal Reserve. That’s compared with $355 billion in the slightly-less-scary “adverse” scenario laid out by the Fed. The central bank noted, as usual, that the “severely adverse” and slightly-less-scary “adverse” scenarios it tests are “not forecasts, but rather hypothetical scenarios designed to assess the strength of banking organizations and their resilience to an adverse economic environment.”
The Fed released its actual economic forecasts on Wednesday, and sees moderate growth on the horizon. This is the fourth year the Fed has done stress tests on the country’s biggest financial institutions. It looked at 30 institutions this year, up from 18 in previous years. Just one, the Salt Lake City-based Zions Bancorp, wouldn’t meet the Fed’s minimum standards for capital in a worst-case scenario. –NJ
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This entry was posted in Apathy, Anger, Mistrust, Disillusionment, Banking Crisis, Bankruptcy, Boom and Bust Cycles, Civil Unrest, Economic Collapse, Economic impact of natural disasters, Financial market turmoil, Hierarchal Control, Squandered Resources, The Pyramid Model, Unemployment rising, Unsustainable Debt Burden, Widening gap between rich and poor. Bookmark the permalink.

2 Responses to In worst-case scenario, Fed sees $501 billion in losses at nation’s biggest banks

  1. Hom says:

    According to one Revelation bible teacher, the four horsemen in Revelation 6 has already been released since March 2008. My bet is that one of the four horsemen was the hit man that took the lives of these 9 bankers. And that horseman has to do with economic collapse. If this bible teacher is right, the four horsemen will complete their intended purpose by this year or next. This would coincide with the Four Blood Moons that we are expecting to show up this Passover and next year’s Passover. It also complete the 7 year cycle, called the year of release or sh’mittah year. The white horseman sure brought a lot of snow to Upper Wisconsin this winter.

    Hom

  2. niebo says:

    OK, Dudes, Wayne Allyn Root is the new poster-boy for how to mine hell for humor; I mean, like, “While Rome burned, Nero fiddled, and I danced a jig!” What’s he slippin’ into his java and where can I get some for my boss?

    Go to 6:54 (through 15:30) to hear a very interesting “theory” in regards to the deaths of the bankers and how they relate to Chinese “hypothecated” gold (that is, gold pledged as security or collateral), the subsequent exit from the commodities market by JPM, as well as the sale of its commodities headquarters (for one-third of its actual value) to the Chinese. . . .

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