They never learn.
All of the 34 largest U.S. banks are fortified enough to withstand a severe U.S. and global recession and continue lending, the Federal Reserve said Thursday.
“This year’s results show that, even during a severe recession, our large banks would remain well capitalized,” Fed Gov. Jerome Powell said in a statement. “This would allow them to lend throughout the economic cycle, and support households and businesses when times are tough.”
Feb., 2008, even as Lehman teetered and the ripples spread:
Bernanke said he believes major banks and Wall Street firms are likely to take additional earnings hits tied to bad investments in subprime mortgages. That could lead to tighter lending standards and contribute to an overall slowdown.
“More expensive and less available credit seems likely to continue to be a source of restraint on economic growth,” Bernanke said.
But he added he’s not worried about bank failures because he thinks banks entered the current downturn with sufficient capital and have been able to raise additional funds.
The good news is that they have learned a little – they now couch their stupidity in terms of a severe recession. The bad news is … give it a few months…
Today’s News NJ.
More on how Bernanke and Co. were so laughably wrong, HERE.
Really not a laughing matter.