Does that test include off-balance sheet items or derivatives?
How about a stress test of the citizens who bailed out the banks to see if they could "deal with (more) severe financial and economic shocks" brought to them by these risk-taking banks who fail their own stress tests.
So Goldman has until September to re-submit a test. Why doesn't Goldman just lie so they can pass. It would not make any difference if they did. Why change the rules now?
Fed Rebukes Goldman Sachs and JPMorgan Chase Over Capital Plans
By Peter Eavis - DealBook
Goldman Sachs and JPMorgan Chase, the Wall Street giants that emerged from the financial crisis in a position of strength, are now facing questions about their ability to withstand future market shocks.
On Thursday, the Federal Reserve said Goldman and JPMorgan would need to resubmit their proposals to pay out billions of dollars to shareholders, citing weaknesses in their capital plans. In the meantime, the banks can move ahead with their shareholder payouts.
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