The Obama administration is drawing up plans to disclose the conditions of the 19 biggest banks in the country, according to senior administration officials, as it tries to restore confidence in the financial system without unnerving investors.
The administration has decided to reveal some sensitive details of the stress tests now being completed after concluding that keeping many of the findings secret could send investors fleeing from financial institutions rumored to be weakest.
While all of the banks are expected to pass the tests, some are expected to be graded more highly than others. Officials have deliberately left murky just how much they intend to reveal — or to encourage the banks to reveal — about how well they would weather difficult economic conditions over the next two years.
As a result, indicating which banks are most vulnerable still runs some risk of doing what officials hope to avoid.
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The decision on handling the stress tests underscores the delicate balancing act by the government, which has spent hundreds of billions to stabilize banks. Despite some signs of improvement in the financial system, many economists remain concerned that banks are still weighed down with toxic assets stemming from the housing downturn.
Until now, the Treasury Department has simply said that it will reveal the amounts of any new infusions of capital into banks that regulators judge to be at risk if the economic downturn is prolonged or the economy takes a further dive.
April 15th, 2009 at 11:19 am
Oh yea, great idea. Wait until AFTER they got all the money to run a “health check”! Ingenious!
Get ready for a nice sugar coated false report by NoMamma the Liar!
April 15th, 2009 at 7:28 pm
Remember in grade school when all the geeks and brains got straight A’s? And the lost and retarded students got F’s. You sort of remember them don’t you. They stood out, right?
Now try to remember the students who got just the old average C’s. Every freekin class….a C. They are invisable right? Now expect all banks to get C’s. There will be a few B+ in there to make it look respectable. But beleive me every bank will recieve a C . And you know what….the whole test is a nigger rigged, fake piece of crapola. As bad as it is, and we all know the banks are insolvent…not one freekin bank will recieve an “F” . In reality nine out of ten banks “should” recieve an F. Let’s see?