Stress test a joke
I really had not followed the details of the stress test but Big Picture did a post on the stress test leverage, 25 to 1!!!!!
Big Picture talks about how leverage used to be 12 to 1, but I believe if you look even further back it was 8 to 1. Twelve to 1 was already a weakened ratio for leverage and 25 to 1 is insane. During the depression 12% of bank deposits were never repaid. That suggests financial safety of deposits requires leverage to be set to 8 to 1.
Lol, and look at the logic for allowing 25 to 1, so banks can earn their way out of this mess. More likely so they can put more money at risk and loose it.