wealthwire.com / By Brittany Stepniak / Friday, March 8th, 2013
It’s that time of year again – the Fed will initiate an annual stress test to the nation’s biggest banks to see if they really are too big to fail after all.
According to estimates from the Federal Reserve, 17 of the country’s 18 largest banks would lose $462 billion dollars if our economy were to nosedive into another recession equivalent to our most recent one.
However, the Fed confidently asserts that most of the largest banks would survive despite the huge losses. If losing half-a-trillion dollars doesn’t bring them down, they must have a boatload of money stored away…
Could it be that $83-billion-taxpayer ‘donation’ they rake in every year that’s keeping them afloat in lieu of financial disturbances?
Of the 18 banks tested by the Fed, only Ally Financial, the former finance arm of General Motors (GM), would sustain big enough losses to potentially put it out of business. All of the other banks would have enough capital to make it through.
Thanks to BrotherJohnF