Major U.S. Banks Forced Into New Round of Stress Tests

[Parsad]

For those concerned about the "too big to fail" banks, they were recently put through another rigorous stress test.  Banks here are in great shape compared to most of the rest of the world.  Berkowitz's comments, that this period reminds him of 1994, I believe are comparable.  Cheers!

 

http://www.cnbc.com/id/44422054

[ShahKhezri]

Yup, the comparisons to 1994 are supported empiricaly as well:

 

"The loans to low-cost deposits ratio dropped below 90% in August 2011 for the first time

since January 1994 to 89.9% for the 25 largest U.S. banks, as compared to 100.9% at the end of 2010. The loan/deposit ratio increased slightly to 90.9% on August 24."