Bank Stress Test Result: Another WhiteWash In Progress

Posted by Kris | Friday, April 24, 2009 | | 0 comments »

I still believe that the Federal Reserves will NOT EVER produce strict stress test to temper with the current nice stock rally. Bank stock prices are doing well right now, they don't really want to induce another fear in the markets. DJIA is now up 71 points, Nasdaq +20.40 points & S&P +7.17 points. 


Bank industry to hear results of 'stress tests'

Bank industry to hear how well they did in 'stress tests'; government will detail methodology

WASHINGTON (AP) -- Federal regulators on Friday will privately begin telling the nation's 19 largest financial institutions how well they performed in stress tests to assess their soundness.

Regulators trying to stabilize the financial system also will release the test methodology they used, which could provide clues about which banks may be in trouble -- but also could unwittingly roil the industry.

The results of the stress tests won't be publicly released until May 4.

The slow-motion rollout is intended to blunt market reaction to the news of which banks are healthy, which ones could fail if the recession worsens and which need more money to survive.

News reports, including a confidential outline of the tests first reported by The Associated Press this week, have led analysts to start handicapping which banks could fail. The speculation will intensify with Friday's release of the test methodology.