How many banks do you think should be ok on the stress test?

yingying

yang9753

Deleted.

yingying

2# yang9753
where did you get this? "The bank itself designs the model for testing and submit the results."
If so, all banks will be ok. No banks would like to fail, I guess.

usami

看news， 好像是这样， bank自己project losses。 那是肯定过的。。这种test的结果能忽悠很多人么？

Roubini

The stress test is a dumb idea designed by treasury to stabilize the market, so no bank will fail the test.
Some bank will be pushed to raise more equity in 6 months, if they can't do it on their own, government will provide the money (partial nationalization).

Ideally the government can sell the stake once the market recovers. It's buy low sell high for Uncle sam, so guess what will happen after the stress test.




Unless the economy really really sucks and spin out of control, no big bank will be allowed to fail again. Has any big bank fail after Obama take office? The government even want to prevent Chrysler from bankrupt should it not being disrupted by some heged funds.

oldfox

maserati

The result of stress test is not important as it's a take-home open-book test. Market reaction will depends on whether MMs want to sell on news or use it to push higher.