Wednesday, May 6, 2009

How Does Nouriel Roubini Know This?

In an op-ed in today's FT, Nouriel Roubini and Matthew Richardson write:

The tests, which measure how viable banks are under adverse economic conditions, have no “failed” category...
How do they know this?

I have been following the bank stress test story very closely and I have not seen any mention that there is no failed category. Perhaps I missed it. I don't think so.

I just completed a google search for:

"no failed category" bank stress tests

The only link that comes up is the Richardson-Roubini commentary. Could our man with the infamous wall be getting inside information from his former silent partner?


  1. Giethner said stress tests were designed to instill confidence in the banking system. No "failure" designation helps achieve that aim.

  2. True, but I think RW's point is how does Roubini no about this specific fact.

  3. they were probably saying it wont have it, b'cos of the way fed/.gov behaviour last few months. Everything will be bailedout. Rescue will be attempted at everything.

    If stress tests have "failure", whos problem is it ? best guess, it wont have "failure"...only "improvement required"