Weighed in the Balance

Too Much Of Cash Holdings In Banks

Have the banks passed the stress test or not? It does not matter even a test is not made. Some of the banks in the nation are flooded with cash. The first quarter sees a sudden increase in the cash holdings and securities. AXP, BAC, GS and MS, some of the Fortune 500 banks are some big institutions experienced higher cash holdings Due to the economy downturn, loans cannot be boosted with the taxpayer funds received from the Treasury’s Troubled Asset Relief Program. Goldman Sachs, Chief of Finance has reported $164 million instant cash in the last quarter and comments that liquidity in the present situation is a dangerous environment.

Tags: Security, Stress