Turner Radio Network Part 2 | Bank Stress Test Results

Big five in big trouble

Will Goldman Sachs stay standing?

As I reported in Turner Radio Network Part 1, the U.S. Treasury has said that the bank stress test results are not in yet. However, Turner Radio Network published on its blog what it says are the results of the tests conducted on the 19 biggest banks in the United States.

The report says that 16 of the 19 banks are technically insolvent, so if installment loans or other types of loans go into default the banks could go under. It has specific numbers for five giant financial institutions that have credit exposure that exceeds their capital.

By the numbers

Here are the results of the study regarding total credit exposure to derivatives, according to Turner Radio Network:

1. Bank of America: credit exposure to derivatives 179 percent of its risk-based capital
2. Citibank: 278 percent
3. JPMorgan Chase: 382 percent
4. HSBC America: 550 percent
5. Goldman Sachs: 1,056 percent

That means Goldman Sachs’ credit exposure is more than 10 times its capital. ... click here to read the rest of the article titled "Turner Radio Network Part 2 | Bank Stress Test Results"