Deustche Bank's U.S. Unit Fails Fed Stress Test

The video discusses recent stress test results for major banks like Morgan Stanley, Goldman Sachs, and Deutsche Bank, highlighting their leverage ratios and the Fed's perspective on banking. It examines operational risks in banks, regulatory impacts, and the current state of bank capital levels. The video also speculates on future economic risks and their potential impact on banks.

What was the main concern for analysts regarding Deutsche Bank's performance in the stress tests?

• Their ability to increase payouts

• Their inclusion in the Fed's probation list

• Their strong capital levels

• Their high leverage ratios

How does the Federal Reserve view the future economic conditions?

• As irrelevant to current banking operations

• As a critical factor in their assessments

• As less important than current conditions

• As unpredictable and not worth considering

Which bank is mentioned as having significant operational risk problems?

• Morgan Stanley

• Bank of America

• Goldman Sachs

• Wells Fargo

What is the administration's stance on large banks compared to community banks?

• It has no clear stance

• It favors community banks over large banks

• It treats both equally

• It favors large banks over community banks

What was the impact of the tax reform on banks' capital levels?

• It temporarily decreased their capital levels

• It increased their capital levels permanently

• It decreased their capital levels permanently

• It had no impact on their capital levels

What is the current leverage ratio compared to pre-crisis levels?

• It is more than twice the pre-crisis levels

• It is lower than pre-crisis levels

• It is slightly higher than pre-crisis levels

• It is the same as pre-crisis levels

Where are the risks expected to emerge during the next economic slowdown?

• In government bonds

• In small community banks

• In major banks

• In large asset managers