These Banks Almost Failed the Stress Tests

While only one bank failed the stress test this year, these banks only passed by the seat of their pants.

David Hanson
David Hanson and Matt Koppenheffer
Mar 11, 2013 at 5:28PM
Financials

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.