All but one of the 30 largest banks are now strong enough to weather another severe economic crash, the Federal Reserve said Thursday.
In the newest of the series of health examinations mandated after the 2008 financial crisis, only Zions Bancorp could not measure up to a basic capital standard in a theoretical drastic meltdown of the economy.
Twenty-nine bank holding companies held up in the worst-case scenario with a cumulative 7.8 percent Tier 1 common ratio, a basic measure of capital strength, down from 11.5 percent at the end of the third quarter last year, but ending well above the 5.0 percent minimum target.
Read the full report here; http://au.finance.yahoo.com/news/29-30-us-big-banks-104731794.html
So according to the U.S. banking experts and regulators there is virtually no risk of another banking crisis in the U.S. - even in a "worst-case scenario".
So there's nothing to worry about with American banks. Even though U.S. banks Tier 1 capital common ratio has fallen a dramatic 32% in less than 6 months, that's not a concern either. Phew! And here I was concerned for no reason.
Likewise, the ECB is sure to give the 'all-clear' to Europe's largest banks later this year too. So we should just defer all of our misguided concerns to the banking experts and regulators of the world's largest banks and merrily get on with out lives. Nothing to see here....or another case of watch this space?
