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Federal Reserve Tells Big Banks Results of Their 'Stress Tests'

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posted on Apr, 24 2009 @ 10:07 PM
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But leaves the public to ponder....


Link

The nation's largest banks yesterday learned how much money the government projects they will lose over the next two years, the result of "stress tests" to determine whether they need more capital to survive those losses.

The government hopes to reassure investors that most banks are in good shape. But at least one firm was told yesterday that it must raise more capital, according to a person with direct knowledge who spoke on condition of anonymity because of the sensitivity of the information.

Banks required to raise money have several months to find private investors before they are forced to accept federal aid. Other banks may be required to improve the stability of their capital reserves by issuing common shares to preferred shareholders. In some cases, the efforts to buttress capital could force companies to sell the government a significant ownership stake.




Just more of the behind the scenes manipulation of business by the government.

On the heels of the Freddie Mac high ranking officer committing suicide and the testimony of the BoA exec of gov't coersion to force them to buy Merrill, here WE (citizens) have virtually no disclosure on WHAT is going on in OUR Country.

This is beyond crazy, a G7 meeting is coming up and one of the topics is discussing the stress tests which WE (citizens), will not officially know about until sometime in MAY... watered down and lawyered down I am sure....

How is this supposed to stimulate Free Market activity?

IE: investors having the confidence to put their money back into the market..

What a joke


What are the odds of having the sunshine bill for the FED being passed...

Oh sorry first it has to be discussed, and what are the odds of that????




posted on Apr, 24 2009 @ 10:12 PM
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if the stock markets were not controlled, the market would be in the negative...




posted on Apr, 24 2009 @ 10:14 PM
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reply to post by warrenb
 


Would you care to expound on that?




posted on Apr, 24 2009 @ 10:31 PM
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I also read, that any of the companies that did poorly on the stress test would be happily given more money.

Me "Hey Nancy, Hey, Hey, hey Mrs. Nancy. Mrs. Pelosi, over here, over here, c'mon, MRS. PELOSI!!!", Pelosi "What Mike!?!" "I gave myself a stress test, I didn't do to well, I need 50 Quadrillion Bijillion dollars, in the next two days, Everyone knows i'm too big to fail". Mrs. Pelosi, "Okay, well you can have it now, and we'll see how you do in three months, if you still need another Eleventy Bijillion dollars, we'll give it to you". Me, "Thanks Dumba$$". Pelosi "Your welcome."


Here we go the link
www.foxnews.com...

Yep too big to fail.

[edit on 24-4-2009 by Republican08]



posted on Apr, 25 2009 @ 03:41 AM
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Originally posted by JacKatMtn

Just more of the behind the scenes manipulation of business by the government.

I don't think that the government manipulates the a-holes enough. They shuffled in on their knees asking the government for cash -- they asked the government for it in the first place. They got no business to ask the taxpayers for cash. Cool, I give you cash, but you'll do exactly what I tell you. Only an imbecile would kick himself in the butt the way Mr. Banker did. No one has any confidence in that financial charlatans. The government should have already its own banks set up and running and completely bypass the greedy incompetents. Just let them disintegrate with no unemployment to speak of.

This is just a lukewarm remedy leading to more economic masturbation. Back in early 1980s, the unemployment was comparable, but no one ran any fancy stress test, coz the banks had required reserves to withstand expected variation in the economy. JP Morgan found a loophole and when TSHTF, there were not just enough reservers to wait out the economic downturn, coz it was lended to the subprimers. Now the government "manipulates" the execs telling them what to do to get necessary reserves ready. The stupidos did it to themselves, so they should pay the price.
Good.



posted on Apr, 25 2009 @ 08:58 AM
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Not that Im plugging my new vid but yet I am

www.youtube.com...



You hit it on the head how can anyone invest in this market for the long term. There is so much behind the scenes manipulation that its hard to make any form of intelligent decision on where to put that money. There is no free market here just cronyism. Where's the change at?



posted on Apr, 25 2009 @ 09:08 AM
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reply to post by stander
 


Therein lies the problem, the government shouldn't have committed the enormous sums of taxpayer money into the savingof these institutions.

Relfecting back on the Paulson Summit on the weekend before the Lehman Bros collapse, I can't help but wonder if this whole mess was concocted during this pow wow. It was reported at the time that they (Fed, Treasury, and numerous BIG Bank Bigwigs), were discussing the Lehman Bros situation, which sounded strange to me because the Lehman Bros big wig wasn't there, (if I remember correctly). If my memory serves than looking back it makes more sense that they were looking for ways to save their own arses.

Too big to fail was the mantra, too big to fail...

Yet, instead of preventing companies from becoming too big to fail, the Fed/Treas/Admin of this country were forcing banks to absorb/acquire other big banks? I don't follow that logic. If you should decide not to follow the govt's request, you just might see a CEO step down to get a YES man in place to do what the govt wants...

As far as the big banks having brought this upon themselves, I would agree that they were definitely their own worst enemies but you cannot discount the impact of Congress in this mess, and past Administrations, this didn't happen overight.

I have been reading a book called The War of the World: Twentieth-Century Conflict and the Descent of the West by the author Niall Ferguson which was published in 2006, and there is some interesting information of what happened during the depression which eerily mirrors some of the events of today, the recounting of FDR's innaugural speech in '33 really shows that this time around it appears that the BIG difference this time is the preemptive move by the gov't to avoid the market collapse which resulted in the depression of the 1930's.

I can understand what they are trying to prevent, but I can't see how anyone could ever regain confidence enough in the market to begin investing again.

Until the Government gets out of the way, and let's the chips fall where they may, everything associated with the markets has the mark of manipulation.

How can that be a good thing??



posted on Apr, 25 2009 @ 09:46 AM
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Yet, instead of preventing companies from becoming too big to fail, the Fed/Treas/Admin of this country were forcing banks to absorb/acquire other big banks? I don't follow that logic.


The best analogy I've heard so far is that it was like trying to figure out a way to get a rock to float. The government's solution was to tie it to another rock.



posted on Apr, 25 2009 @ 03:54 PM
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Originally posted by JacKatMtn
Until the Government gets out of the way, and let's the chips fall where they may, everything associated with the markets has the mark of manipulation.

The government put too big a distance between itself and the financiers during the Clinton Administration and the result became apparent later when JP Morgan began releasing money into the economy that by a regulation were not supposed to enter. Others followed suit inventing financial derivatives that were incresing the money supply. The market loved it.

So when the government governs it's called "manipulation" but when the financiers bypass safety regulations it is called "financial operation." Of course, the bankers will unleash a brainwashing campaign to infest the mind of gullible Americans with the slogan "government manipulation."

Here is how today hawkish corporate America works. It cost you about $13 to do the work, and then you send the customer bill:
tech.yahoo.com...

Note that the sissy writer never mentioned which company sent the bill.

BTW, Franklin Delano Rooswelt was unprecedently elected three times to the office by the Americans who kind of liked the way he "manipulated" their butts out of the Great Depression.


[edit on 4/25/2009 by stander]



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