Turner Radio Network Leaks Info on Bank Stress Tests

Treasury says it does not have results

The U.S. Treasury has been conducting “stress tests” on banks to find out how well the 19 biggest banks in the United States could weather further economic hardship. The United States Treasury insists that these tests are not completed. However, Turner Radio Network has published what it says are the results.

Online organization Turner Radio Network, which advertises itself as “Free speech; no matter who doesn’t like it,” published a report on its blog.

Turner Radio Network’s report

The network’s blog says that of the 19 banks that were tested, only three are in good shape. Turner reports that 16 banks are already “technically insolvent.” I guess that explains why it’s so tough to get personal loans nowadays.

Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans, Turner reports.

Teetering on the edge?

Turner Radio Network also reports that if two of the banks that underwent stress tests collapse, it “will totally wipe out all remaining FDIC insurance funding.”

The network also says that there is serious doubt as to whether the top five banks will remain viable businesses. Turner reports these banks are dangerously undercapitalized.

Big banks, big risks

The report mentions five large financial institutions by name. It says these banks “have credit exposure related to their derivatives trading that exceeds their capital”:

• JPMorgan Chase
• Goldman Sachs
• HSBC Bank America
• Citibank
• Bank of America
  

It says the first four are taking especially large risks.

Getting specific

The report reveals the specific credit-to-capital ratios of the top five banks. Check out Turner Radio Network Part 2 for that information.