Bank Strees Test and Capital One

[FiveDriver]

Did anyone else notice the story on MarketWatch yesterday about a recent Bank Stress Test -- the article says that 33 out of 34 banks passed the test, except for CapOne (they were given Conditional Approval).

CapOne MM has been very good in my limited interactions with them online.....I don't know if this is a long-term concern.


Banks boost dividends, buybacks after Fed’s stress test, except for Capital One - The Tell - MarketWatch

 

[whatnot]

Well that figures. I just moved $10,000 into a MM last week!

 

[Walt34]

And I just opened a new credit card account that gets me $150 credit for spending $500 in the first three months and 1.5% back on everything. It also has what I think is an absurdly high credit limit. I could buy a new car with it. Well, not a Rolls though.

 

[Texas Proud]

A big nothing burger for anybody who deposits money with them as long as you stay under the federal limit...

 

[MichaelB]

This is of no concern if you have a credit card or FDIC protected account, like a CD. It might be a problem for stock investors or holders of subordinate debt.

 

[FiveDriver]

I have been feeding my CapOne MM Account with a regular ACH transfer. I have no issue with them, they paid that $200 Bonus in a timely manner. I like their Web Interface.

I was thinking of opening an online Checking Acct with them. But it appears the GSBank has a better checking deal, no?

It's a question of do I trust Goldman Sachs to have my best interests at heart.

 

[Texas Proud]

This is of no concern if you have a credit card or FDIC protected account, like a CD. It might be a problem for stock investors or holders of subordinate debt.

Heck, probably not even a concern for them.... from the article...

Only Capital One gets dinged so to speak, and even so, the credit-card focused lender received conditional approval if it resubmits its plan.
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So, maybe did not submit something properly and it will be approved when they get it right...

 

[Backpacker]

Having worked in banking industry for many years, I can tell you that the"shock" tests border on ludicrous. Leaving all else static, they apply 1-3% immediate rate change. If rates jump 3% overnight you can be sure that the bank would make immediate changes, and consumers would not continue the same path either.

 

[pb4uski]

+1 The stress tests are very robust.... actually that is a nice way of putting it... they are a bit ridiculous.

 

[Koolau]

+1 The stress tests are very robust.... actually that is a nice way of putting it... they are a bit ridiculous.

Just every once in a while, ridiculous is good, but YMMV.

 

[GrayHare]

I'd still rather not have to go through an FDIC insurance process, which can take months if not years. Last time I looked at Capone's, umm, CapOne's CDs they had a harsh breakage penaly which clawed back not only the interest but also some of the principal. Perhaps that's no longer the case.

 

[meierlde]

I'd still rather not have to go through an FDIC insurance process, which can take months if not years. Last time I looked at Capone's, umm, CapOne's CDs they had a harsh breakage penaly which clawed back not only the interest but also some of the principal. Perhaps that's no longer the case.

If you stay under the FDIC limit and the Bank is sold to another bank the current checks etc are valid until new ones are issued. I had a couple of accounts with WAMU for example and they just transfered to Chase with no bother on my part, except finding a chase branch to close them. (Moved from when I opened them). Likewise during the great Texas Bank Closing wave in the 1980 at least one of the banks I was using went thru the process again the accounts were assumed by the new bank no muss no fuss. The only fuss is the few times the bank is just wound up and if you stay under the insurance limit you just get your money.

 

[Backpacker]

We had CD's at banks that went under, and we received our funds in about a week, with no fuss.