These Banks Almost Failed the Stress Tests

Updated

In this video, Motley Fool analysts David Hanson and Matt Koppenheffer talk about the Dodd-Frank banking stress test results from last week and which banks nearly didn't make the grade. While only one bank failed, Goldman Sachs and Morgan Stanley reported the lowest passing stressed minimum ratios, the key metric regulators look at when deciding how healthy a bank would be in a crisis. Matt and David tell us whether investors should be concerned and why the investment portfolios of Goldman Sachs and Morgan Stanley make them more vulnerable during a crash.

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Goldman Sachs is a buy today, we invite you to read our premium research report on the company today. Click here now for instant access!


The article These Banks Almost Failed the Stress Tests originally appeared on Fool.com.

David Hanson owns shares of Goldman Sachs. Matt Koppenheffer owns shares of Morgan Stanley. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement