Wednesday, April 8, 2009

Bank Stress Tests---Fail?

Today Reuters is reporting that the results of the stress tests preformed on the financial institutions would not be released until after earning season.

Would the administration delay the results if the stress test results were positive? Probably not

The Treasury Dept. says it wants to “avoid complicating stock market reaction.” In other words, our banking system is shit. In delaying the results the Treasury Dept. is trying to avoid a dramatic drop in banking shares. The release of bad quarterly numbers and the poor stress test results would negatively affect the stocks of the banking industry, and in turn, the overall market.

So much for transparency.

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