This is getting ridiculous! They just keep on trying to cover shit up.
U.S. Stress Test Results Delayed as Early Conclusions Debated
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By Craig Torres and Robert Schmidt
April 30 (Bloomberg) -- The Federal Reserve will postpone the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.
The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.
Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.
“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers Association in Washington. “If they don’t let him go gently there will be a lot of mauling going on.”
The 19 firms include Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., GMAC LLC, MetLife Inc. and regional lenders including Fifth Third Bancorp and Regions Financial Corp. The banks in the test hold two-thirds of the assets and more than half of the loans in the U.S. banking system, according to a Fed study released April 24.
The Fed led the stress tests, using as many as 140 staff members working in consultation with 60 people from other bank oversight agencies.
While the banks were ordered not to release the results of the stress assessments prematurely, Goldman yesterday may have provided a hint with its decision to sell bonds and shares, issuing $2 billion in five-year notes without a government guarantee and making a $750 million stock offering. A spokesman for Goldman declined to comment.
“You can read between the lines on it that nothing adverse will be coming out next week” about Goldman, said Ralph Cole, a money manager at Portland, Oregon-based Ferguson Wellman Capital Management Inc., which oversees $2.2 billion.
To contact the reporters on this story: Craig Torres in Washington at ctorres3@bloomberg.net
Last Updated: April 30, 2009 18:09 EDT
U.S. Stress Test Results Delayed as Early Conclusions Debated
Share | Email | Print | A A A
By Craig Torres and Robert Schmidt
April 30 (Bloomberg) -- The Federal Reserve will postpone the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.
The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.
Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.
“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers Association in Washington. “If they don’t let him go gently there will be a lot of mauling going on.”
The 19 firms include Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., GMAC LLC, MetLife Inc. and regional lenders including Fifth Third Bancorp and Regions Financial Corp. The banks in the test hold two-thirds of the assets and more than half of the loans in the U.S. banking system, according to a Fed study released April 24.
The Fed led the stress tests, using as many as 140 staff members working in consultation with 60 people from other bank oversight agencies.
While the banks were ordered not to release the results of the stress assessments prematurely, Goldman yesterday may have provided a hint with its decision to sell bonds and shares, issuing $2 billion in five-year notes without a government guarantee and making a $750 million stock offering. A spokesman for Goldman declined to comment.
“You can read between the lines on it that nothing adverse will be coming out next week” about Goldman, said Ralph Cole, a money manager at Portland, Oregon-based Ferguson Wellman Capital Management Inc., which oversees $2.2 billion.
To contact the reporters on this story: Craig Torres in Washington at ctorres3@bloomberg.net
Last Updated: April 30, 2009 18:09 EDT
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