Receiving Wide Coverage ...
Stress Tests: The Fed released the scenarios for the next round of modeling exercises mandated by Dodd-Frank for 30 or so large banks. The hypothetical economic shocks this time include a sharp slowdown in China. An industry lobbyist tells the Journal that these theoretical stressors are "the most extreme to date." But Times columnist Peter Eavis wonders why 1970s-style runaway inflation isn't considered in the stress tests. Remote as that scenario may be, "stress tests are meant to capture the unexpected. Remember that housing crash hardly anyone foresaw?" Unlike the last two rounds of stress tests, this time the Fed will let banks whose dividend or share-buyback requests would cause them to fail the tests avoid embarrassment by revising their plans before results are published.
FHA's Annual Audit: The numbers have been leaking out in advance of today's official release, they ain't pretty, and a taxpayer bailout is looking more likely.
Wall Street Journal
The OCC will soon hit JPMorgan Chase with a cease-and-desist order telling the bank to
Who needs Shakespeare when you have Citigroup? Before his ouster, former CEO Vikram Pandit traveled to Tokyo for the IMF and World Bank conference with his colleague, and soon-to-be successor, Michael Corbat. Unlike Pandit,
New York Times
The protracted legal battle between Bank of America and MBIA over junky mortgage-backed securities concocted by Countrywide is handsomely