The Fed completed its annual “stress test” of bank’s financial health. So what does that mean to us and our clients? And, what is so contradictory about these results?
When you custodian your assets (the location that actually holds your assets) you want the organization to be sound and viable in the worst of times. You want your assets accessible when you need them. So, holding assets with custodians that at least meet these Fed criteria appears wise and preferably you would like to be at the top of this list. Not all banks on this list custodian investment assets. But, it is nice to see the Bank of New York Mellon at the top of the custodians, where we custodian most of our assets.
What is so funny about the results is that some of the Banks on the bottom of this list had an ad campaign a few years ago describing that they are so big and strong that their clients had better access to financial products. Based on these and prior results that does not appear to be the case. Any time someone tells you that they have better access or proprietary investments, consider that as a signal that you need to find another adviser.
Read The Full Article (or search the title "Fed Stress Tests Find Banks Adequately Capitalized")