White House Says Banks Stress Tests Will Reveal ‘Gradation’

http://www.bloomberg.com/apps/news?pid=20601110&sid=amaiNMON0tEo

The grades will be the following
1- Well capitalized
2- Very well capitalized
3- Extremely well capitalized
4- All of the above

 

Funny how he stresses that.

 

......in a world where everybody is "above average".

 

Of course there is also
5 - Irresponsibly well capitalized, might have to pay special one time dividend or buy back shares

 

The grades will be the following
1- Well connected in the government
2- Very well connected in the government
3- Extremely well connected in the government
4- Goldman Sachs

 

The origional grading system was:

1. Too Big to fail
2. Too small to care
3. Populist scapegoat
4. Chuck Norris-type capitalization

 

How about we rate everything triple-A? As I recall, that worked well for mortgage backed securities.