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:
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?"no failed category" bank stress tests
Giethner said stress tests were designed to instill confidence in the banking system. No "failure" designation helps achieve that aim.
ReplyDeleteTrue, but I think RW's point is how does Roubini no about this specific fact.
ReplyDeletethey 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.
ReplyDeleteIf stress tests have "failure", whos problem is it ? best guess, it wont have "failure"...only "improvement required"