Bank Stress Results Leaked - 16 Big Banks Insolvent ?!!!

[SmoothOperator]

This has been circulating online. It seems on the sensational side so tek it wid a grain a salt.


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. (Without further government injections of cash)

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.


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.

http://turnerradionetwork.blogspot.com/2009/04/leaked-bank-stress-test-reults.html

[Dr.Dudd]

Re: Bank Stress Results Leaked - 16 Big Banks Insolvent ?!!!

Well I never knew they would allow it to get that bad. But I had stated that the problem is not caused by any housing and subprime as they are saying.
the majority of the banks in truoble in the country does not deal in subprime.
It is not going to get better any time soon either.
That is becaus they are not even trying to deal wiot the real problem.
As a matter of fact they are doing the opposite of what they should have ben doing to solve the problem for good.

[turtledude]

Re: Bank Stress Results Leaked - 16 Big Banks Insolvent ?!!!

What I'm curious about, and what I haven't heard<span style="font-style: italic"> ANYTHING</span> about, is the banks exposure to unsecured credit card debt. &quot;Back in the day&quot;, during a dismal period in<span style="font-style: italic"> my</span> life, I made my house payments by using the small amount of cash I had, and then bought food, gas, and everything else I needed with credit cards. I ran up 28k in debt before the house of cards collapsed. You can't tell me this scenario isn't lurking on the horizon. I believe the housing deal is just part of the problem.
The government should have taken the money they gave the banks, and funded housing construction for newly indigent, unemployed families, then (since banks aren't loaning money anyway) put unemployed bankers and everybody else to work building them.
Shuffling paper, and paper money doesn't produce anything, or help anyone, except the already rich.

[Dr.Dudd]

Re: Bank Stress Results Leaked - 16 Big Banks Insolvent ?!!!

You hit th enail on the head,but one [pont you have not adressed,is that [b]the majoroty of people who are able to pay will become delinquent.
this is brought on by the greed and stupidity of the banks and the politicians that allowed them to turn the banking system into a casino in which the house always win, (They thought). The politicians allow the banks to change the due date of bills at their convenoience. This cause the majoroty of late payments. These late payments results in up to 4 folds increase in intrest rates. This affects not just the account that the bank tampered with,but all accounts.
Well that seem like an easy way to make money for the short sighted MBA's in the banks.
As a result of this the majoroty of loans that were issued to qualified borrowers, have transformed them unto delinquents.
Thi sweakens the banking stytem in many ways. Two og which is a reduction in loan demand from these borowers,and a sessation pf payments on outstanding debts. It would be managable of this was a small percent, but that affects al most 1/2 or higher.
The other half are people who really do not use that much lians. So the banks destroyed the best part of their market. the problem is they are behaving as if this is nit the case.
This situation is Similar to what happens in every area of unrestructed harvesting of nature. They never stop until extinction sets in. then they start wroinfing their hands and blame it on the poor. Like they di in Africa. After the West for centuries destroy the wild animals in Agtica with their high profit safaris. This is where they kill thes eanimals by th ethoussnds fpr years.
Now they are blaming the African and starving them out of their way if life.
Nobody think they owe thise africans for what they stole though. They simply blame them for what was done by the West.
Just like they want to blame the subprome. This is not a problem of sybprime.
subprome was created to avoid an earlier crash of the financial system. If they did not fins
d a way to bring in new money then,the economy woull have imploded.
Now the subprime cannot support itself,so they blame it for the priblem.