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Finally as the Fed says that under its latest stress tests and big banks have continued to improve their ability to withstand an extremely.
Adverse economic scenario another bad financial crisis and our collective -- -- much stronger capital positions.
Then before the financial crisis now these tests are mandated under the Dodd-Frank financial reform for the top eighteen banks representing 70% of total bank assets to make sure that we avoid.
Future bank bailouts.
And the bank that's still looks like -- having trouble -- ally financial which is still struggling with bad mortgages and operating under a taxpayer bailout now overall.
A terrible financial crisis on an awful economy the Fed says.
Would generate 462.
Billion dollars in projected losses.
Over nine bad quarters thru the fourth quarter of 2014 but even -- goes bad losses the Fed says that banks would still have seven point 7% in.
Tier one common equity capital down from about 11% now.
But that's well above the 5% that the Fed would consider a minimum level for a bank to be considered financially viable tier one common equity is the best measure of a bank's financial health mostly shareholder equity mostly shareholder cash.
Now the severe hypothetical economic scenario assumes peak on employment and up twelve point 1%.
-- 50% decline in the stock market housing prices down more than 20%.
Under that scenario the four biggest banks would still have decent capital by the end of 2014 city would be at about eight point nine.
Wells Fargo at seven.
Bank of America six point nine JPMorgan Chase six point eight the worse capital levels allied.
Projected at one point five the best Bank of New York Mellon at fifteen point nine in all of this would be before any.
Future additional capital raises for these eighteen minutes -- it looks like allies the only one that failed is that right Peter quickly gas not a pass fail because obviously ally is going to be under the gun as it works through this this bank bailout to raise more capital.
Citi Bank of America they're all looking good at this point Peter -- will be right back with much more on the bank stress tests and how it.
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