U.S. Fed Treasury Asks Banks To Keep Quiet On Stress Tests!

President Barack Obama is meeting on Friday with top financial regulators to discuss the stress tests, the results of which are anxiously anticipated by financial markets. Officials have said they will release the results in some form by the end of April...

With Citigroup and Bank of America leading the Zombie bank march...
The stress tests were about JP Morgan Chase, Citigroup, Bank of America and Wells Fargo. At least two and maybe all four are in doubt. If the economy deteriorates in the worst case scenario, with 10% unemployment in 2010, then all nineteen banks may be in doubt. But for now the center of the poison storm is Citigroup, Bank of America and Wells Fargo.

The U.S. Treasury Department is asking banks not to mention the regulatory "stress tests" as part of their first-quarter earnings results, according to a source familiar with government discussions.
Many of the top 19 U.S. banks who are undergoing regulatory stress tests have already completed internal versions of the examinations, which are designed to determine their capital needs under more adverse economic conditions.

However, the banks do not yet know the results of the government's version of the assessment, the source said.

U.S. President Barack Obama is meeting on Friday with top financial regulators to discuss the stress tests, the results of which are anxiously anticipated by financial markets.....

.....Officials are still discussing how to release the results of the stress tests, and the decision will likely be made by the Treasury, a source familiar with official talks said.

The source said officials are aiming to release them in some form at the end of April after the first-quarter bank earnings season is over, and are trying to be sensitive to financial market reaction....

www.reuters.com...

Transparency at its finest.

I rather the truth just be thrown out there and let the pieces fall where they fall. I am tired of the government trying to cushion the blow or manipulate the system. And they shouldn't release them in some form, they should release it in its entirely.

Time to sell in the stock market??????

Originally posted by jam321
Transparency at its finest.

Giethners "stress tests" are really more like handholding.

Simon Johnson (former IMF Exec) says that this kind of iffy, nervous
"testing" is not real, just a cover up to keep unnamed (C of BAC) zombies, and ultimately this will cause the markets to stagger and sag.
Nouriel Roubini argues too that C and BAC are insolvent, and it we wait six months, all nineteen banks will be insolvent!

Here's an article talking about your zombies

* Zombies: Institutions kept alive only by TARP funding. These subtract value from the economy and should be put out of their misery through controlled liquidation, with the healthy parts being salvaged.

* Walking Wounded: These banks may need a little bit more help, but are currently operating adequately on their own. One caveat: An intensification of economic downturn could push some of them into "zombie" status - or even bankruptcy.

* Risky but Proud: These banks have relatively high risks, because of acquisitions or their business models, but are operating at full blast and can hold their heads high for their success in dealing with 2008’s enormous difficulties.

* Hidden gems: These banks have conquered 2008’s difficulties, taken care of their bad debt problems, and still managed to make a substantial profit. Short of a repeat of what U.S. banks had to deal with from 1929-1933 as part of the Great Depression, these financial institutions should continue to operate in the black.

seekingalpha.com...

reply to post by jam321


informative article...The "gems" should run for cover! I would imagine there is some sinister plot that involves the TARP money...and that is why the administration does not want it back...round em up and suck them dry!

Hidden gems: These banks have conquered 2008’s difficulties, taken care of their bad debt problems, and still managed to make a substantial profit. Short of a repeat of what U.S. banks had to deal with from 1929-1933 as part of the Great Depression, these financial institutions should continue to operate in the black.

seekingalpha.com...

Translation of the headlines = most of the banks are insolvent and the multiple bailouts amount to being just a scam to put more money in corrupted, crony banker pockets.

Consider these for a few moments:

Wells Fargo projects record $3 billion 1Q profit

Wells Fargo Assails TARP, Calls Stress Test ‘Asinine’ (Update2)

And lastly:

JPMorgan Chase, Goldman Sachs, Citibank, Wells Fargo and More Than 1,800 Other Institutions Believed to Be at Risk of Failure Based on Fourth Quarter 2008 Data

If they end up claimng that the banks passed the stress tests, it will because those 'tests' were phoney from the get go.

[edit on 9-4-2009 by Seekerof]

I hope so.

Or, what does it matter?

They can value their assets at any number they want.

Or, why be so secretive? More Bushy policy on the horizony? No, it is already here.

So Obama is asking banks to further the fraud going on in our baking institutions? Are you effing kidding me? This is going to cause a huge sell-off of financials, because if risk takers CANNOT CALCULATE RISK, THEY WON'T TAKE THE RISK.

Jesus Christ somebody slap Obama and his economic team awake already.

reply to post by projectvxn


Looks like it...yes they are trying to keep a few Zombie banks propped up...for sure there is a concerted attempt to maniputlate the markets.

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.

finance.yahoo.com...

I personally believe that the accounting change last week was an attempt to manipulate the markets.

Seems like many banks may show a profit(FAKE???) thanks to this change.

www.abovetopsecret.com...

The Fed has Ordered Banks to Stay Mum on ‘Stress Test’ Results...so no matter what the results...it will move the markets. If the testing information is withheld, or released and is not enough...the results could cause the markets to plunge...

The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.

The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.

“If you allow banks to talk about it, people are just going to assume that the ones that don’t comment about it failed,”

www.bloomberg.com...

reply to post by jam321


I agree, and suspect that there is a dark day waiting from the result of the manipulation, and fruadulent accounting.

Kind of like a domino effect...I think this is what George Soros was talking about

Soros, speaking to Reuters Financial Television, also warned that rescuing U.S. banks could turn them into "zombies" that draw the lifeblood of the economy, prolonging the economic slowdown.

"I don't expect the U.S. economy to recover in the third or fourth quarter so I think we are in for a pretty lasting slowdown," Soros said, adding that in 2010 there might be "something" in terms of U.S. growth.

CNBC

While Soros is no friend of the U.S., he maybe onto something...seeing the game that is being played. I think he is right...in saying that the banks are basically insolvent. www.abovetopsecret.com...

And in the same token, if the tests aren't disclosed it could cause a complete breakdown in confidence as know one would know what the real potential risks are...There are already enough smoke screens, but this one is just ludicrous.

Keep quiet banks! LOL

So we don't want to release the phoney stress tests that will do a tricky two step...i.e say the banking system is very sound....and that "Only" a bit more capital injections may be needed

Then they wouldn't want to release this data on tuesday......only for wednesday to see the big banks report great earnings and people would say "WHY THE HELL would we bail them out anymore" thru AIG backdoors or whatever......

it almost seems like a potential lose-lose for the administration so they will RELY on the MSM to parrot positive spin

otherwise should banks fail the stress test that would be awful for confidence.....and show that the banks earning a profit this quarter is smoke and mirrors along with any ( evidence of turning point in economy...lol.....

however should banks pass stress test and post earnings profits (or record profits) while the economy and joe 6 pack suffers ......and the admin. says they may still be giving more money to the banks....this would not sit well............eh interesting times

reply to post by cpdaman


LOL is right! What a game...I suppose that since these banks took the TARP, they can be controlled. So The Fed wants to make sure that the numbers don’t leak during earnings conference this month...that could possibly push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in conspiracy fashion later this month. But this move has created a suspicion and mistrust, and concern that things are really much worse than what’s being reported!

www.bloomberg.com...

washingtonindependent.com...





[edit on 11-4-2009 by burntheships]