Bank "stress test" results obtained for top 19 banks, Turner Radio Network says A copy of the stress test results were obtained by The Turner Radio Network, and the site says the results are "very bad." Out of the top 19 banks in the U.S., 16 of them are already technically insolvent and out of the 16 banks that are insolvent, none of them can withstand any disruption of cash flow or a further deterioration in non-paying loans. The results also show that the five largest U.S. banks are so under capitalized that there is serious doubt about their ability to continue as ongoing businesses. Link: http://turnerradionetwork.blogspot.com/ TAKE WITH A LARGE CHUNK OF SALT!
Similar to what I wrote on a Citi thread a few minutes ago: Although the banks are in bad shape, I think the govt will continue to be extremely kind to them when injecting equity. For example, buying equity at high prices, and/or providing guarantees in exchange for low fees.
Hum lets see, I bet they let the market fall a bit on this rumor. Then someone from goverment will come out and release the real test and it will be much better than the rumor. PRESTO! A RALLY!
Well sure and they will, they will also let the banks contuine to screw everyone with sky high rates. Goverment will say how outraged they are at this and nothing will get done about it.
The govt has to be REAL careful here. If they spin this as being worse than expected, then I think you see some banks "nationalized". Remember, the govt has as much, if not more, skin in the game as the banks. If they spin "banks are basically healthy", then look for them to make it harder for banks to pay back TARP funds early. My guess is that they (govt) are winging it and have no idea what they eventually end up doing.
Denied now, obviously... RTRS-U.S. TREASURY SPOKESMAN SAYS DO NOT HAVE RESULTS YET FOR BANK STRESS TESTS 100% agreed with Arnie, they're walking a tightrope over a VERY deep chasm here. If they make the results too rosy, they risk a very large loss of credibility. Obv, if the results are too gloomy, they risk a very negative reaction. A proper conundrum for the authorities. They better take extra care wording that press release.
In the time article: "senior Administration official" haha, what a source. Total liar scumbag. What kind of idiots still believe the government?
Yep here they go. http://biz.yahoo.com/rb/090420/business_us_usa_banks_stressresults.html?.v=1&.pf=insurance