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Results of stress tests to be released Thurs.

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Kdillard Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 06:26 AM
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Results of stress tests to be released Thurs.
Edited on Sat May-02-09 06:27 AM by Kdillard



http://www.washingtonpost.com/wp-dyn/content/article/20...


The government plans to release Thursday the results of stress tests on 19 large banks, showing projected losses for each bank through 2010, officials said yesterday. Many financial analysts expect the results to show that several large banks, including Citigroup and Bank of America, need additional capital to survive such losses. Banks will be given six months to raise the money from private investors before they must accept federal aid.

The Treasury Department has twice postponed releasing the test results, in part because banks continue to contest the government's findings. The disagreements center in part on the depth of likely losses in various loan portfolios, and the ability of the banks to increase earnings in the coming months, according to sources familiar with the matter. The Federal Reserve, which conducted the tests, remains in discussions with several banks and some results still could be adjusted, the sources said.


Also yesterday, the Fed announced an effort to increase the availability of mortgage loans on commercial properties. The Fed said it would offer loans to investors to purchase up to $100 billion of bundled commercial mortgages. The effort expands an existing program, the Term Asset-Backed Securities Loan Facility, or TALF, which previously offered three-year loans to investors in credit-card and auto loans. The Fed now will offer five-year loans, better matched to the terms of commercial







Ridiculous why are they allowing the Bankers to tinker with the results?
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