Stress tests no guarantee of banks’ survival (Mar 2014)

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Source: CNA – Stress tests no guarantee of banks’ survival

Notable excerpts:

Just because a European bank passes the upcoming stress tests by European regulators does not mean it has the necessary mettle to continue to survive, the German banking federation said on Monday.

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Fed Assets Reach Record $4 Trillion on Unprecedented Bond-Buying (Dec 2013)

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Source: Bloomberg – Fed Assets Reach Record $4 Trillion on Unprecedented Bond-Buying

Notable excerpts:

The Federal Reserve’s balance sheet reached a record $4 trillion, as the central bank pushed on with its unprecedented asset-purchase program.

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First China Default Seen as Record $427 Billion Debt Due (Dec 2013)

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Source: Bloomberg – First China Default Seen as Record $427 Billion Debt Due

Notable excerpts:

Chinese company debt twice the size of Ireland’s economy will come due in 2014, spurring concern the nation is on the cusp of its first corporate bond default.

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The Federal Financial Triangle

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Source: The American –  The Federal Financial Triangle

As odd as it may seem to us now, under the National Banking Act from 1863 to 1913, local banks with national charters were the official issuers of U.S. currency, and the government had no central bank. Hundreds of national banks in towns and cities all across the country were issuing dollar bills. They were replaced in this essential role by the Federal Reserve Banks under the Federal Reserve Act of 1913.

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Given Its Highly Risky Balance Sheet, It’s Time To ‘Stress Test’ The Fed (Jun 2013)

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Source: Forbes –  Given Its Highly Risky Balance Sheet, It’s Time To ‘Stress Test’ The Fed

Notable excerpts:

The Federal Reserve has been actively applying “stress tests” to the nation’s banks. Surprisingly no one has suggested a stress test for the Fed.  Yet, in today’s economic environment the Fed’s balance sheet is far riskier than private banks’.

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