Former Fed Governor Thomas Hoenig Says US Banks Undercapitalized; Unsafe, and Unsound Banks

"In another round of "stress" tests last month, the Fed said Big Banks Pass Muster.

Anyone who has been following stress tests in US or Europe knows full well, the tests were in reality "stress free".

Confirmation of the undercapitalized state of US banks comes from former Fed Governor Thomas Hoenig. He served as chief executive of the Tenth District Federal Reserve Bank, in Kansas City, for 20 years. Rules limit terms to 20 years. Hoenig is now vice chairman of the Federal Deposit Insurance Corporation.

Undercapitalized, Unsafe, and Unsound 

Hoenig's opinion should carry some weight. And a New York Times Editorial citing Hoenig sounded an alarm today regarding Unsafe and Unsound Banks. 

 After the latest round of bank stress tests last month, the Federal Reserve announced that, by and large, the nation’s biggest banks would all be able to withstand another crisis without requiring bailouts.

at http://globaleconomicanalysis.blogspot.com/2015/04/former-fed-governor-thomas-hoenig-says.html#RqzvaTFHEVdFOWtM.99