Stress test details to be made public
The stress tests of top banks, that are now wrapping up isn't really a pass/fail sort of thing. But the details will be important, and the Obama Administration has decided to reveal them, according to the New York Times. Until now, officials have only said that they would reveal the amounts of new capital injections. The danger is that the results reveal that some banks are thriving while others are ailing.
But when it comes to large banks, all of which have received TARP funds and FDIC guarantees on debt, the possibility of an actual run is nil. So it makes sense to be forthcoming. The public generally has a good idea which banks are better positioned than others. No one is mistaking Goldman Sachs for Citigroup. But there could be some surprises in the middle ground. On principle, the public really ought to now how taxpayer-supported banks are faring.
For more:
- here's the article
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