Friday, May 08, 2009
Stress Tests Posit 22% fall in US Housing Prices
Yahoo: Stress tests find 10 big banks need $75B more
The not so stressful tests are based on assumptions of unemployment rising to 10.3% and a further drop of 22% in house prices. The tests found that if the recession were to worsen, losses at the 19 stress-tested firms during 2009 and 2010 could total $600 billion. Of those losses, $185.5 billion would be from mortgages, $82.4 billion from credit card loans and $53 billion from commercial real estate loans — the loans on banks' books that analysts say are now most vulnerable to default.
Posted by live4ever @ 08:49 AM (268 views) Add Comment
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