Welcome! Log In Create A New Profile Recent Messages

Deep Creek Hot Springs

The Moon is Waxing Crescent (21% of Full)


Advanced

Re: SC90

All posts are those of the individual authors and the owner of this site does not endorse them. Content should be considered opinion and not fact until verified independently.

April 25, 2009 11:42PM
http://jameshowardkunstler.typepad.com/clusterfuck_nation/2009/04/note-hope-truth/comments/page/4/#comments

Turner Radio Network:

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

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. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)

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.

4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.

5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.

6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital! (HSBC is NOT in the top 19 banks undergoing a stress test, but is mentioned in the report as an aside because of its risk capital exposure to derivatives)

7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

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.


Posted by: Nudge | April 20, 2009 at 07:50 PM
SubjectAuthorViewsPosted

SC90

Wizard1248April 20, 2009 04:47PM

Re: SC90

Wizard626April 20, 2009 04:52PM

Re: SC90

Wizard678April 20, 2009 10:34PM

Re: SC90

Wizard598April 20, 2009 10:59PM

Re: SC90

Wizard638April 22, 2009 10:31PM

Re: SC90

Wizard660April 22, 2009 10:47PM

Re: SC90

Wizard653April 25, 2009 11:42PM

Re: SC90

Wizard661April 26, 2009 12:33AM

Re: SC90

Wizard688April 28, 2009 10:36AM

Re: SC90

Wizard775April 28, 2009 11:23PM

Re: SC90

Wizard687May 02, 2009 03:14PM

Re: SC90

Wizard1360May 02, 2009 04:03PM



Sorry, only registered users may post in this forum.

Click here to login