U.S. Stress Test Results Delayed as Early Conclusions Debated

[Pale Blue Dot]

Source: Bloomberg

The Federal Reserve will postpone the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.

The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.

Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.

“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers Association in Washington. “If they don’t let him go gently there will be a lot of mauling going on.”

The 19 firms include Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., GMAC LLC, MetLife Inc. and regional lenders including Fifth Third Bancorp and Regions Financial Corp. The banks in the test hold two-thirds of the assets and more than half of the loans in the U.S. banking system, according to a Fed study released April 24.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aYN.RjdIR9Hg

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Draw your own conclusions.

[OhioChick]

1. Well, that doesn't sound good. n/t

[DJ13]

2. Sounds like even with a rigged test they didnt fare well

Can we stop dancing around the issue and just nationalize these monstrosities so they can be broken up into smaller, less economically damaging manageable sizes?

[Javaman]

3. they are deciding whether the results suck or

really suck. And if the inclusion of the word "really" will cause a run on the banks.

sigh.

[Javaman]

4. "now may not be revealed until toward the end of next week"

I predict a saturday news dump since banks are closed on sundays.

[Telly Savalas]

5. And what impact would this have?

The millions of stakeholders with trillions of dollars involved would simply forget over the weekend that several of the world's largest banks have been declared insolvent?

[Hugin]

6. Hmm... Why am I not surprised?

First the defeat of the Middle-class in the Senate... Now, this.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3856220&mesg_id=3856220

[truthisfreedom]

7. "The results, originally scheduled for publication on May 4..." BULLSHIT! They were originally

scheduled for mid-April, and were already delayed once!