All banks expected to pass stress test; analysts not so sure

All banks expected to pass stress test; analysts not so sure

www.usatoday.com

We expect the stress test to demonstrate that the 19 banks are all well capitalized even under the stress test's worst-case scenario," says Scott Talbott, senior vice president at the Financial Services Roundtable, which represents the largest financial institutions.

However, a chorus of bank analysts and economists are questioning the rigor of the stress tests if the results are really so positive. After all, just six months ago, the entire financial system was brought to its knees ...

(visit the link for the full news article)

The Administration is lying to us again. This is how the manipulate the masses. The crisis is real, but they don't want us to think it is. Just keep spending your hard earned money, you don't need it.

When they wanted to pass the socialist Porkulus bill, Mr. Obama kept telling us how we are all F'ed, but now that his agenda has blown through congress, all is just peachy.

www.usatoday.com
(visit the link for the full news article)

reply to post by finemanm


Recently, Goldman-Sachs and Wells Fargo completed stress tests with good results. The government wanted them to suppress the results to avoid enflaming competition with winners and losers among the TARP banks.

The 2 banks, however, decided that if they came forward, saying,"Look at our great scores!," they'd have an advantage over their competitors with less rosy or lousy scores.

It worked great. Their assets are growing in value and they will be out from under TARP, thus allowing them to offer bonuses and high-powered investments and eating up the competition.

Obama and Geithner, who promised "transparency" in calling for stress tests in the first place, have now defecated in their dockers.

What about the banks who get Cs or Ds or D-s? They will lose assets, employees, and investors, and die!

The fascist regime does not permit government to lose control of corporations( see: G.M.), so now these stress test scores must remain hidden to preserve the Govt. stake.

There is an active, bitter struggle between the performing "capitalist" banks, wanting to get out and compete and pay back investors (including TARP), and the fascist principles of the Obama administration, who want to maintain control over these formerly private corporations and convince America that the crippled banks are "too big to fail."

Stress tests get covered up or watered down (just like grade-inflation in school). Transparency? Not a chance.

We lose.

Look what you've done to my country!

Deny ignorance!

[edit to add s&f4u]

jw

[edit on 15-4-2009 by jdub297]

Originally posted by jdub297
reply to post by finemanm

 

Recently, Goldman-Sachs and Wells Fargo completed stress tests with good results. The government wanted them to suppress the results to avoid enflaming competition with winners and losers among the TARP banks.

The 2 banks, however, decided that if they came forward, saying,"Look at our great scores!," they'd have an advantage over their competitors with less rosy or lousy scores.

It worked great. Their assets are growing in value and they will be out from under TARP, thus allowing them to offer bonuses and high-powered investments and eating up the competition.

Obama and Geithner, who promised "transparency" in calling for stress tests in the first place, have now defecated in their dockers.

What about the banks who get Cs or Ds or D-s? They will lose assets, employees, and investors, and die!

...Isn't that capitalism? You know... what America is founded on?

The problem with this "stress test" non-sense is that it is a loosing proposition no matter what.

Tell the truth, that the banks are insolvent, and you get a run on the banks that FDIC can't cover. Say that they are all doing great, and everyone with two brain cells understands you are full of it.

As for Goldman, its easy to say you are profitable when you change your accounting to ignore your losses in December.

December was a disastrous month for Goldman Sachs, producing a loss of $780 million, but you wouldn't know it from looking at the company's bottom line for the last quarter of 2008 -- or the first quarter of 2009.

December fell through the cracks as the big investment-banking firm moved from a fiscal year ending in November to a fiscal year beginning in January. Billions of dollars of write-downs in the value of commercial real estate loans and other assets showed up in neither period.

The result was that Goldman was able to report a first-quarter profit of $1.81 billion Monday, just as it was gearing up to raise $5 billion from investors yesterday through a new stock offering.

www.washingtonpost.com...

I just paid taxes so that Paulson's old buddies can get rich while I become poor.

reply to post by CuriousSkeptic


10-4, good buddy. s4u. That's what we used to do in this country. Many great men and comapanies ar ethe product of prior failures.

If a policy fails, it should go away and we all face the consequences.

People forget to ask, if these banks failed, what would we do?

Answer: We'd spend the same billions and billions, but on PEOPLE, instead of these failures! It wouldn't have cost us any more to let them go, give government money to the people harmed, jail the thieves, and move forward.

(Anyone who believes that TARP ($800b approved, $356b spent) is the full extent of the cost is not aware that the Federal Reserve has doled out tens of TRILLIONS in guarantees and loans that could've gone to Americans instead of American bankers.)

reply to post by finemann

So what if they fail? Would you rather the Federal Reserve and U.S. Treasury pay out TRILLIONS of dollars to bankers, or to the people and companies cheated by them?

The money has been spent. Where would you have preferred it to go?


Deny ignorance.

jw

[edit on 16-4-2009 by jdub297]

They must be testing them banks today, as I can't access www.usbank.com (the domain name resolved to IP address 1.1.1.1, which of course is wrong). USBank is one of those BAILOUT banks. Maybe they forgot to pay their internet billls.

added:
Oh, looks like I'm not getting that proxy error now, but a page from USBank that says their systems are down.

BTW, US Bank says they are big and strong (after they received a big bailout), but they got some big issues coming up now with a lot of their business/commercial loans, so beware.

[edit on 16-4-2009 by Divinorumus]

Originally posted by jdub297

reply to post by finemann

So what if they fail? Would you rather the Federal Reserve and U.S. Treasury pay out TRILLIONS of dollars to bankers, or to the people and companies cheated by them?

The money has been spent. Where would you have preferred it to go?


Deny ignorance.

jw

[edit on 16-4-2009 by jdub297]

Star for you! I am total agreement. This is the biggest scam in world history. The banks make bad loans to people. The government takes the Peoples' tax dollars to reimburse the banks for their poor business judgment, and the People who borrowed the money and paid the taxes get left holding the bag either still owning the money to the bank or in bankruptcy.

If the banks got their money back through TARP, AIG, and the Fed, then the borrowers should be completely forgiven. If we are using public money, let the public derive a benefit. As it stands now, the banks are making money, hiding their losses by changing their accounting (Enron style with Gov approval), are accumulating a tremendous amount of real estate through foreclosure, and laughing at us.