Big Bank "Stress Test" Results Coming Soon

(AP Photo/Pablo Martinez Monsivais)

A federal regulatory official tells CBS News that the parameters and results of the "stress tests" of the 19 major banks will be released over the next two weeks.

On April 24, the regulators will release a white paper that would set out the parameters of the stress test process. It would outline the specific details of the metrics being used in these tests and how the process is working.

On May 4, the actual results of the stress tests will be made public for all 19 banks.

The regulators are asking institutions "to remain prudent" about discussing these results until May 4.

The stress tests are supposed to gauge a bank's financial health, specifically whether it has enough cash on hand to weather a continued economic downturn. Banks without enough capital could get more federal funds to meet their needs.

Last week, the Federal Reserve ordered banks to keep the test results a secret, as government officials expected to formally release the results later this month. The New York Times reported the government usually does not disclose results of bank evaluations for fear of sending investors and depositors fleeing.

[Richielakes]

Washington and Wall Street are now fully engaged in a shameless shell game designed to deceive millions.

The regulators? notion of ?stress? is a 3.3 percent economic contraction and 8.9 percent unemployment in 2009.

But the economy is already shrinking at the annual rate of 5 percent and unemployment is already at 8.4 percent.

Worst of all the rosy earnings that banks announced last week are based on jury-rigged accounting rules:

Rules that allow the banks? accountants to simply wave a magic wand and

* Instantly inflate the book value of toxic assets they own
* Miraculously vaporize liabilities they are responsible for
* Magically erase billions of losses in their quarterly reports ? treat them like they never even happened.

Put simply, Washington are so terrified by the true condition of America?s banks, they have resorted to COOKING THE BOOKS!

[farnorth5]

The unfortunate part is that the "Parameters"used have already been surpassed by events.
The numbers are actually far worse than those being used,so expect to hear that all banks of the eighteen are actually" solvent",and only need a small temporary amount to "get the credit "moving again.
This is all a sham to give these Banks money ,indirectly that the Senate and House wont give directly. The reality is that if they are solvent then they need NO money from anyone.If they are not solvent then they should be going through Chapter 11 equivalency. Any thing else is just a scam !!!!

[Trust_me_]

Can`t wait to see this , Giethner will say he used turbo tax and these are the numbers it gave him!

[PVperson2]

"some jibber jabber numbers that are total BS!
Posted by Rowdy106"

"You sound upset."
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Well of course he's upset, the country isn't going to hell in a hand basket like he and his fellow neo-cons hoped. The economy is showing signs of improvement, houses are starting to sell, banks are lending money again and the neo-cons like Rowdy are having a fit. Give them a break, they aren't used to an administration that ACTUALLY does something, they're used to GOP fear and smear. THEY ARE CONFUSED!

[jntlw]

I have absotely zero trust in our government ( Repub or Dem) that they will do the right thing. They are there to protect the rich few at the top and scr*w the rest of us. at all costs. Bye bye America!

[perk235]

The banks just thought WOW, what a nice idea, until they realized it would give these communists total control, and the free market system would disappear.
Posted by Rowdy106 at 11:01 AM : Apr 16, 2009
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We haven't had a "free market" since we handed over control of our entire monetary system to the Federal Reserve.

Here's what Woodrow Wilson said after realizing his mistake in signing the Federal Reserve into existence:

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."