No U.S. banks will close due to stress tests: source

[ProSense]

No U.S. banks will close due to stress tests: source

Thu Apr 9, 2009

WASHINGTON (Reuters) - U.S. officials will not look to close any banks based on the results of "stress tests" being conducted to determine how the largest U.S. banks would fare under more adverse economic conditions, a source familiar with official talks said on Thursday.

"You can't close a bank based on a hypothetical," the source said, speaking anonymously because the tests, being done by the U.S. Treasury, are still being finalized. "And you wouldn't want to anyhow, based on the size of the banks."

However, the tests are likely to show that some banks may have sizable capital needs under the conditions being tested, which is "common sense," the source said.

Officials are still discussing how to release the results of the stress tests, and the decision will likely be made by the Treasury, the source said, adding that officials are aiming to release them in some form at the end of April after the bank earnings season is over.

[Kurt_and_Hunter]

1. Not surprising

At this point the "adverse" stress-test levels are roughly equal to or even rosier than the average mainstream baseline projections so it's no longer a test at all.

[ProSense]

2. Frankly,

source sounds like speculation:

However, the tests are likely to show that some banks may have sizable capital needs....

[kirby]

3. Prepare for TARP 3 for another capital injection n/t

[ProSense]

6. I'd rather prepare for

them releasing the stress test results. Let's see if the results presented are bogus. If they don't release them, then the episode will be deemed a farce. If the results released are detailed and sound (not bogus), then they should reflect some troubled banks.

[PBS Poll-435]

4. Gee. I wonder which ones need $$$

You might be surprised by a few of them...

[Aloha Spirit]

5. Aw, and the housing slump was just starting to hit New York.

My brother who rents in New York was hoping sadly that finance industry would continue to drag down the local economy so that his rent would go down.
lol