tag:blogger.com,1999:blog-3758330678390419129.post898550755311756059..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Some Thoughts on the Stress Test ResultsRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3758330678390419129.post-47768910927404039472009-05-08T11:37:00.000-04:002009-05-08T11:37:00.000-04:00Robert Wenzel's comments hit spot on!!....
I beli...Robert Wenzel's comments hit spot on!!....<br /><br />I believe as time goes by and if the WMI cases are allowed to proceed more and more of the American public will realize WaMu was no different than any of the other big banks......If it had been given the opportunity of being involved in the govt's sham "stress tests"...It would have shown WaMu as solvent and would have been given the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-78779491378871666022009-05-08T07:45:00.000-04:002009-05-08T07:45:00.000-04:00@PEU
I am not sure there is even much of a cash f...@PEU<br /><br />I am not sure there is even much of a cash flow benefit. Thta's being promoted by some academic who has probably never set his foot in a board room. Remember, this is preffered stock. A board still has to declare the dividend and if times aren't good the board is fully justified in not paying out the dividend. Thus, no damage at all to cash flow.<br /><br />TCE is a shell game Rednoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-72817868632442160222009-05-08T00:20:00.000-04:002009-05-08T00:20:00.000-04:00The main benefit from converting TARP preferred to...The main benefit from converting TARP preferred to common is improved cash flow, from not paying preferred dividends. <br /><br />The TCE change seems like a shell game. However when the U.S. owns most of a bank's common, they have the power of proxy to control the board.<br /><br />If banks issue bonds to improve their capital position, interest expense increases. Uncle Sam backstopped PEU Report/State of the Divisionhttps://www.blogger.com/profile/10269683860174947542noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-30090915401967215822009-05-07T23:13:00.000-04:002009-05-07T23:13:00.000-04:00The accounting chicanery is what gets me as well. ...The accounting chicanery is what gets me as well. Ken Lewis (Bank of America's CEO) sent a note to Associates stating that in terms of "total" Tier 1 capital the bank was adequately capitalized but it was the "common" tier 1 capital which was deficient in the government's eyes.<br /><br />If I had to guess I would surmise that banks scored exactly what the US Government wanted them to.Anonymousnoreply@blogger.com