Skip to main content


March 11, 2012

More No Stress "Stress Tests" from the Regulators

FT is reporting that “US Bank Dividends Set to Double.’  That’s because the Fed is supposed to release the results of the latest stress tests this week.  This most telling line in the story is “no bank is expected to fail.”  How much stress can a stress test be if no banks fail?  This sounds like more phony no-stress stress tests. 

But, stress tests are not supposed to be cover for banks to make huge payouts.  They are supposed to test the banks’ ability to survive another crisis.  Banks are still facing huge liabilities from foreclosures, litigation, derivatives and declining asset prices.  They are also facing a slowdown in business because the three drivers of global growth, China, the US and Europe, are all slowing down and that is made worse by ongoing worldwide austerity.  This is no time for banks to be running down their capital.

But, that’s what the so called stress tests have become:  an excuse to authorize banks to make huge payouts and run down their capital cushion.  Very sorry state of affairs.



For media inquiries, please contact us at or 202-618-6433.

Contact Us

For media inquiries, please contact or 202-618-6433.

To sign up for our email newsletter, please visit this page.

This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact or 202-618-6433.


Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today