After the financial meltdown of 2008 and the bailouts that many large banks took, the federal government started evaluating the ability of a bank to survive a crisis. In the latest round of testing, most of the largest financial institutions passed quite easily. Here are a few that surprisingly could not make the cut.
Citigroup is the nation’s third largest bank. It failed the Federal Reserve’s recent stress test. It was deemed the biggest surprise on the list, but close behind it were Ally Financial and SunTrust. Another surprise was the inability of MetLife, the U.S’s largest insurer, to pass the stress test.
The test is designed to see if an institution can survive an unemployment rate of 13 percent and a drop in housing prices of 21 percent. While those numbers may not roll around for many years to come, the government wants to know what citizens could expect in the event of a severe financial meltdown. No doubt, it would mean a lot more people would be in need of Kentucky debt consolidation services, which isn’t necessarily a good thing.