Holding nothing back and writing in capital letters, James Quinn explains his assessment of the stress test. – Ilene 
STRESS TEST MY ASS
Courtesy of James Quinn at The Burning Platform
Do you think the government, Fed and the 19 banks that have majority ownership of the Fed are going to tell you the truth. YOU CAN’T HANDLE THE TRUTH!!!!!
These 19 banks are bankrupt. Wells Fargo reported a $3 billion profit. Bull Shit. The toxic assets and future bad mortgages are sitting on their balance sheet. The government is letting them lie to us about the value of those assets. This is all a sham. A giant confidence game cooked up by Geithner, Bernanke, and the bank CEOs.
A bunch of bank examiners spending 2 weeks looking at Citigroup’s books are not going to accomplish diddly squat. Here is a bloggers take on the subject:
TAXPAYER SCREWED AGAIN. BEND OVER AND GET READY.
Fed Said to Order Banks to Stay Mum on ‘Stress Test’ Results
April 10 (Bloomberg) — The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.
The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.
“If you allow banks to talk about it, people are just going to assume that the ones that don’t comment about it failed,” said Paul Miller, an analyst at FBR Capital Markets in Arlington, Virginia.
Regulators are using the tests to determine whether the 19 biggest banks have enough capital to cover loan losses during the next two years if the economy shrinks, unemployment surges and housing prices keep declining. The tests are a linchpin of the plan Treasury Secretary Timothy Geithner announced in February to bolster confidence in the nation’s banks and restore financial-market stability.
Geithner has likened the stress tests to those used by doctors to evaluate a patient’s health. They’re designed to mesh with the administration’s effort to remove distressed mortgage assets from banks’ balance sheets. The Fed is overseeing the administration of the tests, people briefed on the matter say…
Banks should stay silent because a focus on the tests would be “a harmful distraction” from earnings, said Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable in Washington… [had to read that twice, lol]
Full Bloomberg article here.
