Report: Stress Test Results Delayed

[ProSense]

Report: Stress Test Results Delayed

by CalculatedRisk on 4/07/2009

From Reuters: Source: Bank 'stress test' results delayed (ht Branden DD49)

The U.S. Treasury Department is planning to delay the release of any completed bank "stress test" results ...

The Treasury is still talking about how results of the regulatory stress tests on the 19 largest U.S. banks will be released, and may disclose them as summary results that are not institution-specific, the source said.
...
The source ... said officials do not want any test results released before the earnings season wraps up for most U.S. banks on April 24.

The original time frame was no later than the end of April, so this is still on schedule. We definitely need institution-specific results.

Stress Test Update: Regulator Meeting Planned

And on transparency:

"I think serious efforts will be made to respect the confidential nature of the test and its results," (Ludwig) said, but added that "there is a real danger that the results of the stress test are uncovered and this roils the markets."

The results of the stress test should be made public - at least for any bank taking TARP money. This would build confidence in the process, otherwise serious doubts will remain.

[Uzybone]

1. Sounds like bad news

the optimist in me says that this is being played as bad news and when the results are released they will be better than expected. The realist in me just says bad news.