A bank stress test shows how well a bank will do if times get tough. It's a financial EKG of sorts. A whole bunch of fictitious scenarios are created, and your bank is put through the ringer. Banks that hold assets of $50 billion and up must submit to stress tests run by the Federal Reserve on an annual basis. The stress itself would come from a run on the bank where some form of panic makes its holders run to the bank asking to withdraw all their deposited cash. It's this panic that almost killed the banking system in the 20's and set off the Great Depression, when everyone lost trust in pretty much everything. The Fed stimulates the economy by loosening stress tests for banks, and fights inflation by tightening those stresses.
They're kind of the Richard Simmons meets Equinox of financial health.
Related or Semi-related Video
Finance: What is a Street Name?0 Views
Finance allah shmoop What is street name or in street
name All right so people what's the street name main
first maple and of course yeah sesame You knew that
one sunny days Don't you remember that Well street name
works kind of the same way When it comes to
securities That is Everyone in town knows where main street
is Lots of businesses and some apartments have home base
there But when main street is given as a destination
well it's really easy to find on a map Same
deal with securities to make them easy to trade when
they are held in street name while they live with
the street or the broker like they're registered in street
name with fidelity or schwab or goldman or whoever and
that way when the owner of the securities wants to
trade him well they khun just direct the broker to
do so Takes away all kinds of friction of legal
mumbo jumbo that you'd have to go through and jumping
hoops and all that stuff every time you wanted to
trade the stock Otherwise so street name is your friend
and you know let's Hope there's Definitely some sunny days 00:01:05.261 --> [endTime] Ahead here for so many days No There
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