Today we had some big news with the Federal Reserve announcing the results of the dramatic stress tests.  As a whole the US banking industry did quite well, which is to be expected considering they have double the capital that they had three years ago. I was somewhat surprised to see Citigroup, which has one...Read More

The idea that the Federal Reserve can accurately forecast the financial results and capital ratios for these massive banks assuming an 8% decline in GDP, a 50% decrease in stocks, a 20% decrease in housing prices, and an unemployment rate of 13% is truly laughable.  There are just far too many inputs and projections to...Read More

We should see the release of Federal Reserve’s draconian stress test this week which should clear the path for many of the stronger banks to increase their dividends and share buybacks.  It is important for these companies to be able to operate in the shareholders best interests, yet still follow all regulatory guidelines. For the...Read More

It looks like the Federal Reserve is back at it providing leaks to the press, and as usual it sheds a negative light on the banks.  I’m all for higher capital requirements but the rules have to be clear. It’s silly to come up with these fictional “stress tests” scenarios, where one group argues that...Read More