Banks Giving Billions Back to financiers Video U.
E, It's Thursday march 12 markets in New York are open you will find 23 billion dollars. It's basically a money party on Wall Street that is the money at major US banks are intending to get back to shareholders. As soon as they pass workers, On the contrary Reserve's. Stressed hats which are created after the credit crisis back 2008. So during first minutes of these results released nine major banks announced. Any regarding of moves. Well when I'm Dan Butler in new york ny bank who had to do. Shut cut up buybacks. Major dividend raises all that will give billions back to investors so why be doing that air tasking Yahoo! Loan has could that air. The sort of the niche stress test by the Fed wire they needed what's happening. Right where they these were created as you said after the financial meltdown in 2008. And the the primary reason these were created first was to send a message you. Investors and few. Average Americans that the banks receipts that was the 2008 story and now the Fed does these every year as kind of a check in to be sure banks. Have sufficient capital can pay for on hand. Once things get really bad again. Now the event than a Fed these these banks great Iran I think in the Cleary to 10%. Eight when he 5% decline in home prices any 60% decline in stock trading and shares to online sales black friday basically another major economic shock. Does your bank are able to afford to survive that it is exactly what the Fed is actually testing here with the stressed that there extremes but obvious extremes that we black friday 2015 online shopping have seen them. So why did that our banks so quick to send back this cat investors. Welcome to be a banks the public companies are under more pressure than normal from their shareholders to say hey you guys have been very profitable. In in recent years since the financial doom and gloom. You know after yet the bailouts and the Fed has left rates at zero that's been very good for the banks and so they have they have generated tremendous amount of profits. Profitable trades for the. Last year were the most significant they were since 2007. IE before the crisis so the banks are making money and their shareholders who are owners of send out. Assert hey you gotta give us some of that cash back. Want to please a shirtless obviously but the same time a dozen kind of put them in so where they're tried to avoid altogether thus you know got to recreate that too big to fail idea that if in fact they don't have the capital on hand during a crisis. To dominate it revisited at yeah a unique degree pointed but we should off that back and have a reality check if we did have a 25% drop in home values and a 60%. Drop in stock trading and shares and the unemployment rates making to 10% in a short period of time. I don't know that any these big banks could survive as they are still it's. Currently constructed without another bail out so it's a sprinkle of good rookie heater because the government has said we're never gonna about these banks again. But I i am a lot of other experts think you know if things get really bad again will bail them out so. This is again it's a little bit here of the absurd you know the Fed in the backs trying to send a message hey things are all gonna be OK if things get really really bad. But yeah if it does triumph. Then risk a year earlier today have less overall on hand and the Fed is shopping to draw a fine line the say. Okay this is the level where you have enough capital and here is where a sensational scene sufficient. And Bank of America is oriented towards that issue at this time they're gonna have to re submit their capital plan. Due to its fact they got a conditional passed right when there's degrees of passing it's not yes pass fail kind of best buy black friday 2015 test right. Ray we did have awide variety of foreign banks the US subsidiaries Deutsche Bank consent and are which of the Spanish bank there US attorneys failed outrage. For the US banks they all pass but yeah it's there was clearly degrees of passing. Goldman tactic that we anybody trying to get and Bank of America has thirty days to resubmit their plan to the Fed so basically if you Hannity your paper to your professor. And they furnish him. I'm gonna give you another week to work on this papers that he is it possible you best. If you contact me it's not an church agreed so Bank of America has thirty days to basically read. Resubmit their plan and maybe the Fed might blasted and say okay you guys are good ago. Aren't we tilt with the speculators so. Right right and get Ellison who lot of especially after announcement focused on the investors but what about that consumers of these banks I mean what about the chance that some of the capital caps they have on hand. Could actually assist them to resume those normal lending pursuits. It's my question mean actually that you of the data from last year show that bank lending is back in a wide range of major area except in mortgages. So auto lending has been up bank lending has been up and US users. We're taken on more debt as they say. Big area of lending and consumers agreeing to debt. Auto loans very strongly I'd look it would buy cars and subprime lending is within a auto sector. So the banks believe that they're doing a lot of lending again they're just infant they're lending to creditworthy borrowers and we're starting to see them. It great. Though the lending that they be doing it still very tight in the mortgage market because of course that was the senator. Of the efficient in 2008. Banks lent money to anybody could fog a mirror to get home that loan. And they were we're very badly burned by that and so they discovered a lesson and I think there regulators you start with the Fed had. Urge them to consider lending and housing so I think if your consumer and you have easy credit score you can get a loan right now you snake may not be able to get black friday baby a mortgage. Gotcha. Data in front of them from Aaron task the Yahoo! Finance and it thank you've gotten good are you today.
Clearly one can preserve up with headlines right hear anything dot com community. Convinced Dan. This records has been readily generated and may not be 100% accurate.
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