Stress Test Result

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19 of the largest banks undergone stress test based on various scenarios. The results were listed in the table. It is seems like the market did a good job to price in banks that have adequate and inadequate capital. Judging from the stocks price rally, in fact the market priced in much more worse scenario for some of the banks like Bank of America, Wells Fargo, American Express, Capital One.

This "engineered" optimism should provide some relieves lead to more private capital funding. With that, I believe and I need to take a lot of guts to say this: Credit Crisis is behind us even though the pain of housing pricing will continue to decline but already countered by the accounting rule relaxation delaying toxic assets further write-down from damaging their balance sheets.