Michigan-based bank among those to fail stress test
Ally Financial, headquartered in Detroit, made the Federal Reserve's list of major banks that failed to show they have enough capital to survive another serious downturn.
From the Associated Press:
The Federal Reserve says 15 of the 19 major banks stress-tested passed. The Fed noted that all 19 banks are in a much stronger position than immediately after the 2008 financial crisis. Still, SunTrust, Ally Financial and MetLife joined Citi in failing to meet the test's minimum capital requirements.
Ally Financial released a statement saying the Fed's analysis "dramatically overstates potential contingent mortgage risk, especially with respect to newer vintages of loans."
The Fed reviewed the bank balance sheets to determine whether they could withstand a crisis that sends unemployment to 13 percent, causes stock prices to be cut in half and lowers home prices 21 percent from today's levels.
Mixed reactions to Gov. Snyder's consent agreement plan for Detroit rescue
Yesterday, Detroit City Council saw a proposed consent agreement put forward by Gov. Rick Snyder and state treasurer Andy Dillon. The agreement proposes a financial advisory board, among other things, to help right Detroit's financial problems.
The initial reaction from many on city council and Mayor Dave Bing was negative - with several saying the plan takes too much power away from the city's elected leaders.
The Detroit Free Press gathered reaction from Detroit residents, which they say, was mixed. Here's one example:
Sherina Sharpe, 31, a lifelong Detroit resident who teaches writing, said she doesn't know what the best course of action is, but she wants to see the city flourish and isn't ready to shoot down proposed solutions.
"I'm open to solutions as long as they actually benefit the people who live here," she said.
You can read the agreement and weigh-in with your thoughts here.
Broadband deal reaches across Big Mac and into the Upper Peninsula
The Mackinac Bridge won't just transport people and goods, it will also transport large packets of information under a new deal announced yesterday. From the Associated Press:
Gov. Rick Snyder on Tuesday announced a deal between the nonprofit Merit Network Inc. and the Mackinac Bridge Authority. It allows Merit Network to purchase strands of cable crossing the 5-mile-long Mackinac Bridge for use in a fiber-optic broadband project called REACH-3MC.
The project is part of an effort to expand broadband access in Michigan. Snyder says it will help "serve job creators and the Upper Peninsula."