Cutting These 10 Everyday Expenses in 2014 Will Save You $8,844
How to Perfectly Plan Your Divorce to Protect Your Assets
PNC Bank Review – Overview of PNC Bank Accounts, Loans and More
Here’s Why Bank of America Just Closed Your Credit Card Without Telling You
2014 Academy Award Statue Valued at Just Under $400
Why You Could Start Seeing Your Credit Score on Your Credit Card Bills
How to Host Your Academy Awards Viewing Party on a Budget
Warren Buffett Reveals His No. 1 Investment Strategy That Anyone Can Follow
Your ATM’s OS is a Decade Old: Here’s Why Banks Are Scrambling to Update It
What You Need to Know About Obama’s $3.9 Trillion 2015 Budget
Discover What a Discover Bank Online Savings Account Can Do For You
4 Tips to Cut Your Monthly Bank Fees
Here’s Why One Analyst Says Bank Stocks Are Going to Double
How Ben Bernanke Earned $250,000 in 40 Minutes
Visa and MasterCard Join Forces to Protect Your Card from Hackers
The Fed’s Bank Stress Tests: What You Need to Know
The Federal Reserve completed its annual stress test of 30 big U.S. banks, and released the results last week. Of the 30 U.S. banks that were tested, 29 passed, including Bank of America, JPMorgan and Citigroup.

These bank stress tests are part of the Federal Reserve’s role to act as a bank regulator for U.S. financial institutions. The Fed puts big banks — those with more than $50 billion in assets — through these stress tests is “to ensure that financial institutions have robust capital planning processes and adequate capital,” according to an official statement.
About the Federal Reserve’s Stress Test for Banks

The Federal Reserve began administering the stress test in 2009, following the government bailouts of several financial institutions, from huge mortgage lenders Fannie Mae and Freddie Mac to smaller community banks.

The test puts banks up against a hypothetical scenario of “extremely severe economic downturn” based on 28 variables, which include a U.S. unemployment rate of 11.25 percent, a 50 percent drop in equity values, and a fall in GDP and the U.S. dollar’s value, according to Forbes.
What the Fed Stress Test Means for Consumers

The fact that 97 percent of the banks tested passed the Federal Reserve’s stress test is a good sign for consumers. Here’s three reasons why:
1. Robust banks means consumers are better protected from financial crises.

The positive results of the stress test show that “the largest banking institutions in the United States are collectively better positioned to continue to lend to households and businesses and to meet their financial commitments in an extremely severe economic downturn than they were five years ago,” according to the Federal Reserve.

Should the U.S. encounter another recession, banks are better situated to weather the financial storm while still providing much-needed services and capital to their customers.
2. Investors can confidently put their money in big banks.

The stress test helps big banks prove to investors their ability to weather the downs of the financial sector. This can increase investor confidence and make their institution an attractive investment, increasing its value and stock prices.
3. Big bailouts are less likely to be needed in a recession — potentially saving taxpayers money.

The stress test shows that overall, U.S. banks would not fail under severe economic stress. While some stimulus money might be called for to assist ailing banks in a distressed economy, the need for bailouts would shrink, meaning taxpayers won’t end up footing the bill.

Map of Manhattan maps of Manhattan.

Hey Ladies: Don’t Miss Out on the Broke Boyfriend Tax Exemption
3 Ways to Fix Your Finances in One Hour for Daylight Saving Time
IRS Reports This Year’s Average Tax Refund is $3,034
How to Start Saving Money for Your Baby’s College Education
How to Find Free Tax Preparation in Your City
IRS Wants to Pay You $25,000 for Saving Your Tax Return
5 Secrets Your Bank Doesn’t Want You to Know
How to Handle the 5 Most Awkward Money Situations
4 Tips to Cut Your Monthly Phone and Cable Bills
Stop Wasting Money Because You Won’t Admit You’re Old
Amazon Prime Price Hike: Is It Worth It?
10 Tips for Winning Your March Madness Bracket and Some Extra Cash
I Lost My W-2! What Should I Do?
4 Cheap, Fun Ways to Celebrate St. Patrick’s Day
What Four Leaf Clovers and Interest Rates Today Have in Common


Visit Statistics