These Banks Almost Failed the Stress Tests

In this video, Motley Fool analysts David Hanson and Matt Koppenheffer talk about the Dodd-Frank banking stress test results from last week and which banks nearly didn't make the grade. While only one bank failed, Goldman Sachs (NYSE: GS  ) and Morgan Stanley (NYSE: MS  ) reported the lowest passing stressed minimum ratios, the key metric regulators look at when deciding how healthy a bank would be in a crisis. Matt and David tell us whether investors should be concerned and why the investment portfolios of Goldman Sachs and Morgan Stanley make them more vulnerable during a crash.

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Goldman Sachs is a buy today, we invite you to read our premium research report on the company today. Click here now for instant access!


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