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
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