Stress Tests Show One Bank Would Need More Capital

[Arnie]

Quote from sprstpd:

When I first heard that a stress test was going to be applied, I thought to myself, "What stress test result would be the most favorable outcome in terms of least panic-inducing and most legitimacy?" And I answered my own question with "They would find only one bank to be in trouble."

How convenient. Stress test = JOKE. So sad the way our country is being run.

You have to wonder WHY would they do this now? I've always thought this is the path to nationalization. If they are honest, and we know that won't happen, then a majority of the banks are probably insolvent. I hadn't thought about your point, but it does make sense. Sort of the sacrificial lamb. Now if the "one" is Citi or BofA, what then?

 

[sprstpd]

Quote from Arnie:

Now if the "one" is Citi or BofA, what then?

My gut feeling tells me that Citi or BofA will be declared to be fine. An inconsequential player (I don't know the full list) will take the fall.

 

[MrDODGE]

Some small banks will need more capital.

Citi and BofA are rolling in extra cash according to Geithner.

 

[Cdntrader]

Quote from MrDODGE:

Some small banks will need more capital.

Citi and BofA are rolling in extra cash according to Geithner.

MS said STI KEY RF most likely.