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Stress Test By The Numbers

In case anyone actually buys the BS stress test results:

Total  Total SH Total ST LL % LL as % TARP
Bank Name Assets Equity LL Assets Equity ASSIST

 B of A  $2,2 T $263 B $57 B 2.59% 21.67% $163 B
 Citigroup  $1.8 T $190 B $56 B 3.11% 29.47% $351 B
 Wells Fargo  $1.4 T $157 B $53 B 3.79% 33.76% $25 B
 JP Morgan  $2.4 T $204 B $53 B 2.21% 25.98% $25 B
 Goldman   $939 B $75 B $20 B 2.13% 26.67% $10 B

Nobody can tell me that in the world of 12% unemployment and 50% decline in the value
 of the equity markets, that not one of the TBTF banks listed above would have asset
 impairment of greater than 2-4%.  If a 2-4% asset impairment results in a 30% equity 
impairment, then let it be said that a 6-12% asset impairment would wipe out TBTF bank
 equity altogether.

Just so people don't forget to put the stress test results into reality perspective, Citigroup
needed $351 billion and B of A needed $163 billion in federal TARP assistance during the
 last crisis.   


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