The Federal Reserve’s “bank stress tests” report shows Obama is hiding lies in plain sight

The Collins Report ^ | April 30, 2009 | Kevin “Coach” Collins

[jmaroneps37]

This “bank stress test” business is just another pack of lies from Obama.

Called “The Supervisory Capital Assessment Program” (SCAP) was a shame. Its Friday afternoon release was suspicious. Information the government really wants to bury is hidden “in plain sight” by a Friday afternoon release to insure publication on Saturday when few people are paying attention.

According to an analysis prepared by Tyler Durden at http://zerohedge.blogspot.com/, the report starts by saying “more than 150 senior supervisors, on-site examiners, analysts and economists” worked for one month conducting the audits of the 19 named institutions.

The problem Durden points out is that a genuine audit of a single bank is conducted by “hundreds of examiners over a period of months. Keep it mind these banks control Ten trillion dollars in assets and five hundred trillion dollars in derivatives.”

Durden continues by pointing out “the firms [being audited] were asked to project…..the firms were asked to provide…etc” and he asks “In other words, the banks tested themselves and the 150 examiners took their word for it. Any wonder they passed?”

So, 150 auditors took one month to examine 19 banks while in real life it takes “hundred of examiners” months to audit a single bank. Anyone who believes this report honestly says anything about American banks is a fool or works in the media.

If we had an honest media this report would reveal more about the actual condition of America’s banks than the government wants us to know. This report screams, “Phony!”

It’s a naked attempt to make us forget Obama’s daily gloom and doom talk since he won last fall.

We can’t trust the media to tell the truth so we have to search it out ourselves.

Go to the Fed’s website http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090424a1.pdf and read the report for yourself.

[jmaroneps37]

Now Obama's people are saying 6 of the 19 banks failed. Based on this information how can we believe anything about the condition of banks? Remember we the taxpayers gave banks BILLIONS and BILLIONS and never even got an idea of what they would be doing with our money.

[ozark hilljilly]

Welcome to the New Normal of Bananaland:
All chairs are blue and no chairs are blue.

[trad_anglican]

According to an analysis prepared by Tyler Durden at http://zerohedge.blogspot.com/

It would lend credibility if "Coach" Collins would refrain from quoting bloggers using pseudonyms.

[resistance]

Isn't it an odd coincidence that Tyler Durden is the guy that destroyed the country's banking system in the movie Fight Club.

[snowsislander]

So, 150 auditors took one month to examine 19 banks while in real life it takes “hundred of examiners” months to audit a single bank. Anyone who believes this report honestly says anything about American banks is a fool or works in the media.

If this were an audit, the author might have a point, but it's not an audit, and if he would carefully read the Fed document, I think he would come to a different conclusion.

Two economic scenarios were played out at 19 institutions, based on position data from a fixed point of February 20, 2009. I find this a reasonable idea, and I don't think that it would take the thousands of regulatory participants, as the author seems to suggest (19 times "hundreds of examiners"), to carry this out.

[Syrin23]

We DON’T want the banks to fail this sham of a test. If all tested banks “failed”, then that would be the excuse the gov’t would use to step in and completely privatize the banking system. Frankly, I am shocked that ANY bank “passed” this “test”.