Most Big Banks Pass Stress Test; 4 Fail

Citigroup, SunTrust among those that failed
By John Johnson,  Newser Staff
Posted Mar 13, 2012 5:17 PM CDT
Most Big Banks Pass Stress Test
This 2011 file photo shows the JP Morgan Chase and Co. sign at its Manhattan headquarters.   (AP Photo/Bebeto Matthews, File)

The Federal Reserve released the results of its latest round of stress tests at the nation's biggest banks, and they're generally being received as good news. Fifteen of the 19 banks passed, which is what outlets such as the Wall Street Journal and Washington Post are highlighting in the the first paragraph. But the AP and Bloomberg opt to focus on the four that failed, and each singles out Citigroup in the opening paragraph. (The three other banks that failed to impress were SunTrust, MetLife, and Ally Financial.)

A Barclays Capital analyst sides with the rosier view, especially when the numbers are compared to the dark days of the Lehman collapse: “It is night and day. In 2009, about half the banks failed the stress test. The industry’s capital position is higher today, and better quality. There is a lot less leverage.” (More big banks stories.)

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