Reduced viability? Banks, insurance companies, and low interest rates
from CFA Institute's Enterprising Investor
Almost all major U.S. banks comfortably passed the U.S. Federal Reserve’s stress tests last month. While that’s certainly good news, the purpose of these tests is to determine whether banks “have effective capital planning processes and sufficient capital to absorb losses during stressful conditions,” not whether they can earn a risk-adjusted return even close to what they were accustomed to in previous decades.
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