Fed Determines 10 Banks Need Capital
By admin on May 8th, 2009
The Federal Reserve determined that 10 U.S. banks need to raise a total of $74.6 billion in capital. The Federal Reserve’s Chairman Ben S. Bernanke said the result should reassure investors about the soundness of the financial system.
The results showed that losses at the banks under “more adverse” economic conditions could total $599.2 billion over two years. Mortgage losses present the biggest part of the risk, at $185.5 billion. Trading accounts were the second-largest vulnerability, with potential losses of $99.3 billion.
FOREX
The key question is what the banks will do with the new capital. The ECB hopes that banks will lend the money out, easing credit conditions. But I don’t know….
In fact I think that the large demand is representative of weak balance sheets rather than demand from consumers…..
These are the alerts for the results of the FOMC announcements in the forex market, in ACMs website:
http://www.ac-markets.com/forex-news/forex-alerts-2009-6-25.aspx