Most CRE pros say the banks aren’t where they want them in terms of extending credit. Financing in all its forms remains high on the want list for the industry as a whole. But how healthy are banks? In what state is their capital and liquidity health? A quick look at a CNBC video in the wake of the Federal Reserve accounting “stress tests” of the largest banks show a clean bill of health for enough of them that former Deputy Scretary of the Treasury Roger Altman spoke of “unmitigated good news”.
Of course, as he said this, some mitigation in fact appeared on the bottom of the screen, mentioning that four of the nineteen tested banks — Citigroup, Aimtrust, Ally Financial and Metlife — failed the Fed’s testing for a record of 15 out of 19. In baseball terms, a .789 average is great, maybe not so much in terms of accounting solvency. More discussion about timing and the politics surrounding the testing follow in the clip.