Federal reserve warns large banks are failing their financial stress test

[Bladewire]

#ThanksTrump

Trump cultists will blame Obama or Hillary

Deutsche Bank flunks Fed stress test; 3 other banks get flagged

The Fed raised concerns about Goldman Sachs and Morgan Stanley that will limit the ability of those Wall Street banks to raise their dividends and buy back more of their stock. The stress test also revealed State Street would suffer "large losses" if one of its business partners came under financial pressure.

In a stress test, the Federal Reserve considers how banks would hold up under the severe strain of a recession or financial market turmoil. Lenders are also evaluated based on qualitative factors, including risk management, internal controls and government practices.

The Fed then passes judgment on each bank's capital plan — how it rewards shareholders with higher dividends and stock buybacks.

Deutsche Bank (DB), which has stumbled repeatedly in recent years. The Fed objected to the capital plan of the German bank's US subsidiary, citing "widespread and critical deficiencies across the firm's capital planning practices."

Although the stress test showed that DB USA would survive a recession, it also found "material weaknesses," including over its data capabilities and controls, how it forecasts losses under stress and risk management functions such as internal audit.

"Together, these weaknesses raise concerns about DB USA's ability to effectively determine its capital needs," the Fed said.

The failure limits the ability of Deutsche Bank's US arm to return cash to its German parent company, senior Fed officials told reporters on a conference call. The Fed will also require Deutsche Bank to address the concerns raised by the exam.

[onwebcam]

No surprise.. Obama let them skate and too big to fail got even bigger..

[GFED]

Fuck the fed. Fuck the banks. I hope they all burn.

[onwebcam]

Originally Posted by GFED

Fuck the fed. Fuck the banks. I hope they all burn.

I had a bank recently ask me to commit a felony.. No shit.. I use to be a broker years ago so I knew exactly what they were asking me to do... 3 people from the bank tried to get me to do it.. 2 managers and 1 underwriter... If I didn't know what they were doing as many wouldn't I likely would have done what they asked.. And if any problem arose down the road I would have been hooked up with a felony charge.

[pimpmaster9000]

focus on the illegal immigrants...nothing to see here folks...

[crockett]

Originally Posted by onwebcam

No surprise.. Obama let them skate and too big to fail got even bigger..

You heard it here 1st.. It's all Obama's fault that Trump had to remove all the protections set in place to stop another crash! Thanks Obama!!!!

[onwebcam]

Originally Posted by crockett

You heard it here 1st.. It's all Obama's fault that Trump had to remove all the protections set in place to stop another crash! Thanks Obama!!!!

Ah yes, what was that? A month ago? That worked fast.

The changes they made really affected smaller banks... They just raised the bar for what is considered a smaller bank..

There's some serious issues with Dodd Frank that will haunt us all very soon.

[Bladewire]

Trump kills class-action rule against banks, lightening Wall Street regulation | Reuters

[GFED]

Originally Posted by onwebcam

Ah yes, what was that? A month ago? That worked fast.

The changes they made really affected smaller banks... They just raised the bar for what is considered a smaller bank..

Last QE ended in Oct 2014?

[Bladewire]

President Trump lifts bank borrowing restrictions imposed after 2008

[onwebcam]

Originally Posted by GFED

Last QE ended in Oct 2014?

Trump Admin made some changes to Dodd Frank about a month ago.. As I mentioned the primary change had to do with raising the bar for smaller banks.

Ideally it should help those smaller banks to grow.. But one problem is once they grow the larger banks gobble them up and they become even bigger monsters.

They really need to go back to the old days of banking.. Where your banker knew you and you knew your banker.. As of right now there is ZERO common sense in banking.. Dodd Frank created little boxes.. If you don't fit inside those boxes then it's no deal.. There is no wiggle room. It's against the law to do otherwise.. This is in fact hampering growth.. The changes Trump Admin made gave the smaller banks more wiggle room and I think this was their goal.. More localized.. But it's too early to tell if it will help.. The Dodd Frank boxes are still there..

The only way to be outside of the Dodd Frank's little boxes is what is known as "outside Dodd Frank" which is pretty much investor only and generally high interest short term and/or commercial.. Simply put, you have to be a corporate entity.

Or, a small tip.. Do business with a local credit union..

[Bladewire]

Trump signs the biggest rollback of bank rules since the financial crisis

Backers say the legislation will lift burdens unnecessarily put on small and medium-sized lenders by the Dodd-Frank financial reform act and boost economic growth.

Opponents, however, have argued the changes could open taxpayers to more liability if the financial system collapses or increase the chances of discrimination in mortgage lending.

[onwebcam]

Originally Posted by Bladewire

Opponents, however, have argued the changes could open taxpayers to more liability if the financial system collapses or increase the chances of discrimination in mortgage lending.

"Opponents" are larger banks who don't want competition.. Who have so much volume they can live a bit longer after turning down loans all day long (discriminating) that don't fit within Dodd Frank..

[2MuchMark]

Originally Posted by crockett

You heard it here 1st.. It's all Obama's fault that Trump had to remove all the protections set in place to stop another crash! Thanks Obama!!!!

Why, I dun der blame de der dum Liberal Boogaazzzi Email Birth Certificate gays I dun do reckon! Ye-Haww fetch ma' fiddle and my maga hat woman! There be dem dar mexi-cants to stomp!

[Bladewire]

Originally Posted by 2MuchMark

Why, I dun der blame de der dum Liberal Boogaazzzi Email Birth Certificate gays I dun do reckon! Ye-Haww fetch ma' fiddle and my maga hat woman! There be dem dar mexi-cants to stomp!

[Rochard]

Originally Posted by Bladewire

Trump kills class-action rule against banks, lightening Wall Street regulation | Reuters

After what just happened during the last recession, it's stunning anyone would do this.

[onwebcam]

Originally Posted by Rochard

After what just happened during the last recession, it's stunning anyone would do this.

What's stunning is you still believe the myth that the people taking out the loans were the real problem.. Is it your fault you're still upside down in your house? Well, it kind of is, but... What has Dodd Frank done to resolve that for you?

Hint: Nothing, because it actually stifles growth. It restricts the ability of others to borrow and be able to pay your needed price.. Which means the longer it's in place the longer you'll be upside down. If I were in your shoes I would be in Washington hounding Congress for it's removal. Yet here you are cheering on your financial hardship.

[Bladewire]

Originally Posted by Rochard

After what just happened during the last recession, it's stunning anyone would do this.

I agree. We're headed down the same path again

[Bladewire]

[Sarn]

>Federal reserve warns large banks are failing their financial stress test
And Federal reserve say it in public to help to this banks losing customers?)) wanna domino effect for hit shit in Trump comrade?

[GAMEFINEST]

Lol
Another bailout

[Bladewire]

↑↑↑ Truth

[Bladewire]

Trump supporters