Talk about walking a tightrope…
The Obama administration, which is in the process of completing stress tests on the country’s 19 largest banks, has chosen to reveal the results of the test to the public.
While all of the banks are expected to pass the tests, some are expected to be graded more highly than others. Officials have deliberately left murky just how much they intend to reveal – or to encourage the banks to reveal – about how well they would weather difficult economic conditions over the next two years.
As a result, indicating which banks are most vulnerable still runs some risk of doing what officials hope to avoid.
So, don’t cause a run on the shitty banks but don’t over-sell the (relatively) healthy banks.
Yeah, good luck with that.
In related news, did you know Goldman Sachs paid back 5 of the 10 million in TARP funds that they received? Granted 10 million in TARP funds is a barely a drop in the bucket but the gesture is nice nonetheless.