Monday, March 2, 2009
White House orders stress test for nation's banks.
According to the NY Times, the Obama administration ordered the nation's 19 biggest banks to undergo a new stress test to check whether they could hold up if the economy deteriorated further.
The new test is meant to gauge the likely hood of a bank being capitalized enough under the harshest economic conditions. If not, a bank would have six months to raise some extra cash on its own or get it from the government in exchange for ownership.
Hearing these latest initiative geared toward the financial institutions, makes everyday people say: "Hey how about us? We already failed all imaginable stress tests long time ago."
For more, see NY Times.com
The new test is meant to gauge the likely hood of a bank being capitalized enough under the harshest economic conditions. If not, a bank would have six months to raise some extra cash on its own or get it from the government in exchange for ownership.
Hearing these latest initiative geared toward the financial institutions, makes everyday people say: "Hey how about us? We already failed all imaginable stress tests long time ago."
For more, see NY Times.com
Labels: Banks stress test, Economic Crisis, Obama administration., White House
GM looses $30.9 billion in 2008
GM who announced last week that it lost $30.9 billion in 2008 and $9.6 billion in the last quarter alone, is saying that it needs $11 billion to $14 billion in cash to fund its day to day to day operations.
Having already received $13.4 billion in federal bailout money last year, GM is now requesting as much as $16.6 billion from the new administration.
After years of successfully selling lemons to the American people, it seems now that the only one willing to listen to GM's sale pitches, is the federal government.
Having already received $13.4 billion in federal bailout money last year, GM is now requesting as much as $16.6 billion from the new administration.
After years of successfully selling lemons to the American people, it seems now that the only one willing to listen to GM's sale pitches, is the federal government.
Labels: federal bailout, GM $30.9 billion loss, Obama administration., U.S. auto industry
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