This is, in effect, an audit and the bank executives are debating the results with the examiners? This is akin to a bunch of recruits who failed inspection arguing with the drill instructor.
O might talk real politic with the auto companies, but he's en thrall to the bankers.
I agree with Yves' comment on early thread - there is going to be major unrest if the president permits this to continue.
Hmmm... how well did the Germans and Detroitians get along? (dont answer that.) Just think...Chrysler could make no sense of the German way of running a car company. With Italians, it will be complete anarchy. (full disclosure - gdd9000=Italian.)
"Since we already know everybody "passed", why bother delaying the release?"
Maybe they are worried that outside factors would blunt the positive effects of the A Double Plus Good results. Or as Dryfly points out, some jackass put some real numbers in there that shows how much of a scam it is.
I ordered the swine flu outbreak because the nations people are such big pussies and wouldn't stage a nationwide strike protest against the government on their own. I had to do it.
there is going to be major unrest if the president permits this to continue.
Unrest by whom? Most people care a lot more about layoffs at GM than about risk-based capital ratio at Citi (I doubt stress tests revealed actual insolvency, it is all about capital ratios)
It is interesting what is their to debate - much of stress tests results are based on judgment, directionally supported by macro indicators. It is not a debate, it is a pissing match.
I imagine that the Fed is showing some of the banks loss assumptions from other banks and asks to explain the big difference.
Senate Defeats Mortgage ‘Cram-Down’ as Democrats Balk (Update2)
The U.S. Senate rejected a measure that would let bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure, a victory for banks and credit unions that said the legislation would increase loan costs.
What is the current state of the finance industry in this country? The results of the bank "stress tests" for the top 19 banks (by asset value) are seen by many independent analysts to be unconvincing. Last week, the Federal Reserve stated that the vast majority were sufficiently capitalized to withstand an even greater economic downturn than the one we are currently experiencing. Yet, this week, Bank of America and Citibank (with almost $4 Trillion in assets, combined) were told to each raise over $70 Billion in capital. High unemployment rates are not going away anytime soon and an economic recovery is not likely to be seen until the beginning of next year even under the rosiest of circumstances. What will happen to BofA and Citi in the meantime? And what about GMAC?
In a nutshell: this economic 'team' is a one-trick operation. They can give money away to their pals. Beyond that they've got nothing. We've got predictions now of a 2009 'bottom' and of 'green shoots'. If the current up market turns out to be a bear market rally that collapses, these guys will pretty much be through. I won't totally write off heir chances of buying their way through with my money (seems to work for everybody but me, somehow)... but I don't think they are going to do it.
Other than ramping up for giveaways, they haven't pulled off a single successful "plan" or even met a single deadline.
Since we already know everybody "passed", why bother delaying the release?
hack accountants trying to make magic with the numbers.
Nemo, this will just add to the drama on bank failure friday!
best wishes
This is part of instilling confidence in the economy.
CalculatedRisk,
But these tests are scams anyway, why not make up numbers?
There is a good reason the prior thread's title was "Stress Test Results MAY Be Released"
GMAC, a bank. That's funny.
Stress delayed is stress denied!!!
Maybe some one didn't tell the examiners it was supposed to be a scam... ooops.
Obama announces that bankruptcy is prosperity.
Deja Vu! Is CR recycling posts now?
while executives debate preliminary findings with examiners
How would that go, exactly?
"We find that you're insolvent."
"Check again!"
"We did. The numbers are all the same. You're insolvent."
"Check again!"
Do little and delay. One way to handle a problem.
Seriously pisses me off, but what else is new.
This is, in effect, an audit and the bank executives are debating the results with the examiners? This is akin to a bunch of recruits who failed inspection arguing with the drill instructor.
O might talk real politic with the auto companies, but he's en thrall to the bankers.
I agree with Yves' comment on early thread - there is going to be major unrest if the president permits this to continue.
Hmmm... how well did the Germans and Detroitians get along? (dont answer that.) Just think...Chrysler could make no sense of the German way of running a car company. With Italians, it will be complete anarchy. (full disclosure - gdd9000=Italian.)
"Since we already know everybody "passed", why bother delaying the release?"
Maybe they are worried that outside factors would blunt the positive effects of the A Double Plus Good results. Or as Dryfly points out, some jackass put some real numbers in there that shows how much of a scam it is.
Why? Because it has to be about money. What do they not want the "test" results to influence in the next week or so?
I am not amused.
I ordered the swine flu outbreak because the nations people are such big pussies and wouldn't stage a nationwide strike protest against the government on their own. I had to do it.
there is going to be major unrest if the president permits this to continue.
Unrest by whom? Most people care a lot more about layoffs at GM than about risk-based capital ratio at Citi (I doubt stress tests revealed actual insolvency, it is all about capital ratios)
It is interesting what is their to debate - much of stress tests results are based on judgment, directionally supported by macro indicators. It is not a debate, it is a pissing match.
I imagine that the Fed is showing some of the banks loss assumptions from other banks and asks to explain the big difference.
Senate Defeats Mortgage ‘Cram-Down’ as Democrats Balk (Update2)
The U.S. Senate rejected a measure that would let bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure, a victory for banks and credit unions that said the legislation would increase loan costs.
Senate Defeats Mortgage ‘Cram-Down’ as Democrats Balk (Update2) - Bloomberg.com
hey gang, I've been asleep since August.
Did anything happen?
(and then I posted my question on a dead thread)
Rob Dawg (homepage, profile) wrote on Thu, 4/30/2009 - 8:52 pm
I am not amused.
If it's any consolation, at least your instinct was right. Hey, it's the next best thing to being amused!
This is great news. It means they're struggling with this issue, as they should be.
Let me spare you the agony, while we await the workaholics at the Fed:
Bank Stress report cards:
Goldman Sachs, Morgan Stanley, JPMorgan = A+ ( teachers pets)
Wells Fargo = B+ (most improved)
BoA, Citigroup = C- need improvement
FITB, Key, Regions Financial = D- (Class clowns)
GMAC = Have no grade point average; no record of ever attending class
"Goldman Sachs, Morgan Stanley, JPMorgan = A+ ( teachers pets)"
the difference between teacher pets & pests might be one small step in a wrong direction...
Analogous to Bush assclowns saying find me WMD's so I can sell a fraudulent war to American public.
Getting sick of Obama sucking Wall St teat....
I mean isn't the Big O plenty satisfied with the big M
Interesting word choice: "debate", not "discuss".
Nothing of interest here, move along.
Wasn't this predicted when the tests were announced?
What is the current state of the finance industry in this country? The results of the bank "stress tests" for the top 19 banks (by asset value) are seen by many independent analysts to be unconvincing. Last week, the Federal Reserve stated that the vast majority were sufficiently capitalized to withstand an even greater economic downturn than the one we are currently experiencing. Yet, this week, Bank of America and Citibank (with almost $4 Trillion in assets, combined) were told to each raise over $70 Billion in capital. High unemployment rates are not going away anytime soon and an economic recovery is not likely to be seen until the beginning of next year even under the rosiest of circumstances. What will happen to BofA and Citi in the meantime? And what about GMAC?
I told you it wouldn't be May 4.
In a nutshell: this economic 'team' is a one-trick operation. They can give money away to their pals. Beyond that they've got nothing. We've got predictions now of a 2009 'bottom' and of 'green shoots'. If the current up market turns out to be a bear market rally that collapses, these guys will pretty much be through. I won't totally write off heir chances of buying their way through with my money (seems to work for everybody but me, somehow)... but I don't think they are going to do it.
Other than ramping up for giveaways, they haven't pulled off a single successful "plan" or even met a single deadline.
Stress tess pool results release pool!! Who's in?
I call the first week in August - good doldrum time to to it
Hee hee. Stress test pool that is.