"A Sham in Print"

Discussion in 'Wall St. News' started by r2d2, Apr 16, 2009.

  1. r2d2


    Interesting observations on bank stress tests and Mr. Geithner.


    Black: Well the stress test doesn't test for reserves at all, because it doesn't test for asset quality at all, or for losses at all. It's a farce in truth. I called it a sham in print, and that's what it's going to be. And you see what of course the leaks are that everybody passed the stress test even though there's supposedly a two trillion dollar hole according to Treasury Secretary Geithner. Well how can all the banks collectively pass the stress test if they collectively need two trillion dollars in U.S. taxpayer money?


    Black: Geithner has a record of being a failure at every step of his career. Most recently he was president of the Federal Reserve of New York, which of course is supposed to regulate the largest bank holding companies in the United States. Well you can see how well he did at that-- he didn't take a single effective action against this coming subprime crisis; he didn't even warn about it. When he was asked recently in Congress, he said well, I've never been a regulator. Well, his job description was to be a regulator; I grant you that he never regulated, but that's not the same thing.