The stress-test is a NON-EVENT because of its political underpinnings . . . The Treasury knows very little about "stress-tests". It's a SHAM. All political. Just trying to put pressure on Ken Lewis and Pandit. Even an official ( Sheila Behr ) at the FDIC says that the "test" is a JOKE. No need to even focus on this.
No U.S. banks will close due to stress tests: source WASHINGTON (Reuters) - U.S. officials will not look to close any banks based on the results of "stress tests" being conducted to determine how the largest U.S. banks would fare under more adverse economic conditions, a source familiar with official talks said on Thursday. "You can't close a bank based on a hypothetical," the source said, speaking anonymously because the tests, being done by the U.S. Treasury, are still being finalized. "And you wouldn't want to anyhow, based on the size of the banks." However, the tests are likely to show that some banks may have sizable capital needs under the conditions being tested, which is "common sense," the source said. Officials are still discussing how to release the results of the stress tests, and the decision will likely be made by the Treasury, the source said, adding that officials are aiming to release them in some form at the end of April after the bank earnings season is over. ---------- Awesome! And the point of the stress tests were to do what again?
1. People underestimated the effect of the FASB changes 2. WFC higher than predicted profit. That's my theory as of right now.
IMHO, the market up because too many side line $$, and WFC "good" news give them a best excuse to get into market even we all know it is a BS good news. Also, we have too many free and cheap money in the system.