On Monday, January 5, 2015 2:07:38 PM UTC-5, wrote:
wrote:
F. George McDuffee wrote:

Why is there no government mandated "crash test" of financial products?
Why no evaluation of their safety and efficacy comparable to
FDA drug screening?

There are supposedly tests on how long banks can stand

It wasn't bank deposit money that was funding the flaky
financial products.

It depends upon what type of bank and which budget their charters allow their executives to have and even raid. They have deposit set-asides, bonus set-asides, interest budgets, P&L budgets, loan budgets, bitcoin budgets, branch expense budgets. Even more types if they are an investment bank.

Stress testing banks doesn't address the question.

But what do top specialists in the field say? "The U.S. stress tests succeeded because they forced banks to raise a lot of capital," says Anil Kashyap, an economist at the University of Chicago's Booth School of Business ..."

-- http://www.wsj.com/news/articles/SB1...g=ren o64-wsj