Banksters Part I: Bernanke to Banks – We Take Care of Our Own

gf-familyThe Federal Reserve said Friday, “the 19 companies that hold one-half of the loans in the U.S. banking system won’t be allowed to fail — even if they fared poorly on the stress tests.”

Besides the fact that according to some analysts including Oppenheimer analyst Chris Kotowski and Wells Fargo CEO Dick Kovacevich, the stress tests are “asinine“, even banks that “pass” the test may still have harder times ahead.

As reported by Bloomberg, stress tested banks “may struggle to raise money after bad assets at the biggest lenders almost tripled on average in the past year”.

And what about the Fed’s balance sheet? It has already taken about $9.6 billion worth of losses on toxic assets it purchased since last fall. Does the Fed need a bailout too?

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