Bill Black, an expert on banking and white-collar crime, described how Donald Trump’s appointees to the Federal Reserve Board are revising “stress tests” to free Goldman Sachs and Morgan Stanley from a requirement to prove they are solvent enough to weather the next recession.
To pass the “stress test,” they’d have to put a larger fraction of their profits into capital reserves. Black said they could easily do this, but it would cut into bonuses and dividends.
He also noted that Germany’s Deutsche Bank in Germany can’t even pass the easier stress test. Deutsche Bank is Germany’s largest bank and, according to Black, the only large bank willing to lend to Donald Trump’s businesses.
LINK
Fed Lets Goldman Sachs, Morgan Stanley Off Hook, Investors Profit Billions, a transcript of an interview of Bill Black for the Real News Network.
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