Detachment A, Marine Light Attack Helicopter Squadron 773, Marine Aircraft Group 49, 4th Marine Aircraft Wing, USMC Reserve, deployed with their U.S. made Bell UH-1Y Venoms in support of Harvey rescue ops, 28 AUG 2017, from Belle Chasse, Louisiana.
HARVEY: COLORADO RESERVE ARRIVES IN TEXAS!
“They’re very worried about the consumer. If we go into another recession, a lot of risk officers feel this is where the damage will be done.”-Paul Miller, former Federal Reserve Bank of Philadelphia, currently working for FBR Capital Markets
It appears the Federal Reserve is losing patience with the Too Big To Fail Banks (TBTFB). It’s questioning the TBTFBs’ desire to pay out huge dividends, and buy back their stocks.
“If the Fed fights back and disagrees and is more aggressive in their stance on cards and mortgages, it would mean banks wouldn’t be able to pay out as much.”-Glenn Schorr, Nomura Securities
Schorr says bank investors are almost demanding 50% to 60% earnings this year!
The problem is that the latest bank stress tests are conflicting with the TBTFB’s own financial claims. The stress tests are designed to see if a bank has enough cash on hand to handle a sudden huge drop in the economy.
So far unnamed insiders, involved with analyzing the tests, say things aren’t looking good for banks. When the variable of consumer debt is considered in the stress tests, some banks would suffer almost double the loses than their own in-house projections!
31 TBTFBs are currently undergoing the Federal Reserve stress test.
No surprise, the U.S. Federal Reserve Bank revised its economic growth forecast downward.
Back in June the bank predicted U.S. growth at 2.9% (which is still bad, it needs to be above 3% to be good). Now they revised it downward by one percent, to 1.9%. Can you say stagnation?
Federal Reserve Chairman Ben Bernanke said the expanding crisis in Europe has made the future of the U.S. economy increasingly unclear.