Friday, May 8, 2009

Bank Stress Test explained

General Motors is reporting a first-quarter loss of $6 billion. It also says it spent $10.2 billion more cash than it took in. The nation's biggest domestic automaker faces a June 1 government deadline to finish a restructuring plan or go into bankruptcy protection.
Any bets about GM heading straight to bankruptcy in June?
We already got chumped by Chrysler-- $7.2 billion "write off" in their bankruptcy of bailout money.

The government released results of stress tests given 19 of the nation's largest financial firms. The tests were to gauge whether the banks would need more capital to survive a deeper recession. Wells Fargo, Citigroup and Bank of America may need billions more.

Isn't that special???


enigma4ever said...

my head hurts....

the banks are hoarding the money....all of it...
and the main ones hoarding...are the ones that are listed here...and yet they also are the main ones that scooped up the a greedy manuver....not to help a damned maybe they should fail...

I would love to know how MUCH money is in the Cayman Islands and the Swiss accounts...seriously...

Spadoman said...

What gets me is that they talk about billions of dollars as if we all can relate. I could use a freakin' twenty dollar bill today to help out my financial crisis, (spent the ready cash at garage sales yesterday)

How can they say they need money when they spent $10.2 billion more cash than they took in? Where did they get THAT money? At least they had it. I wish I could pay off bills and not just pay the minimums to keep "the Man" off my back.

Politicians won't let the banks and car makers fail because there are too many votes attached to the money.

Fran said...

E~ Well, in the case of AIG- they seem to be helping themselves- to fat bonus money & perks, like as if the bailout billions never happened. Business as usual.
The thing about this bailout of the subprime mortgage
greed is by doing the bailouts, they have learned nothing in terms of consequences-- you can eff up big time, and Uncle Sam will fix the problem.
We the people get stuck paying the tab.
You make a good point about hidden monies....
I bet they are masterful at covering their own ASSets.

Sapdo~ Yea! Billions-- more zeros than any of us will ever see.
The automakers spent a shitload of cash on......


My memory is not that short, that I don;t recall them saying the loans for automakers would be different. Because they were helping out for profit industries, they were LOANS that need to be repaid.
A few short months later, Chrylser is filing for bankruptcy & the $7.2 billion is a writeoff???

You just know GM is headed down that same path & we've already given then $15 + billion.

***POOF*** $17.2 billion vanished into the ether.

What free & low income health clinics could have used that money? Or students, or places that support homeless families?

That's a lot of frigging cash just disappearing.

The money flow between politicos & the financial world is tangled together.