UPDATE 1-US to delay bank test results for earnings-source

Reuters ^ | Tue Apr 7, 2009 1:09pm EDT | Karey Wutkowski

[Ernest_at_the_Beach]

* Delay would avoid 1st quarter results period

* Source: Treasury still mulling stress test disclosure (Adds details on stress tests, byline)

By Karey Wutkowski

WASHINGTON, April 7 (Reuters) - The U.S. Treasury Department is planning to delay the release of any completed bank stress test results until after the first-quarter earnings season to avoid complicating stock market reaction, a source familiar with Treasury's discussions said on Tuesday.

The Treasury is still talking about how results of the regulatory stress tests on the 19 largest U.S. banks will be released, and may disclose them as summary results that are not institution-specific, the source said.

The government is testing how the largest banks would fare under more adverse economic conditions than are expected in an attempt to assess the firms' capital needs. The tests are due to be completed by the end of April, but Treasury has said they may be finished before then.

The source, speaking anonymously because the Treasury has not made a final decision on what to disclose, said officials do not want any test results released before the earnings season wraps up for most U.S. banks on April 24.

Treasury did not immediately respond to a request for comment.

[FastCoyote]

In other words, most are insolvent and the bailouts are just a scam to put money in crony banker pockets.

[jiggyboy]

It’s pretty clear that the results are already in, and they stink to high heaven.

[malia]

for later

[dawn53]

Well if it was good news there’d be no delay. This is about as obvious as it gets, so why not just get it over with.

[FrogMom]

Not so fast.

Good results would mean the end of BOs “crisis” and a quick jerk on his reins. He NEEDS bad results to continue his agenda.

[Ernest_at_the_Beach]

Wells Fargo counters the implications of the Obama Treasury...:

Wells Fargo projects record $3 billion 1Q profit

Also:

Wells [Fargo] Chair Slams TARP, Calls Stress Test `Asinine"

CNBC had a Wells Fargo spokesperson on this morning and was asked why they decided to announce their earnings early....answer was less than clear...have we got a game going on between some Big Banks and the Obama Administration?

[Petronski]

...may disclose them as summary results that are not institution-specific...

How delicious! Turbo Tax Timmy wants to play Three Card Monty with substantial and material financial information.

Some smart young whip should bring the wrath of FOIA down on his ass toute de suite.

[Petronski]

What we’re not supposed to notice is how the Fed has been manipulating the yield curve so the banks can mug borrowers just to pump up the P&Ls.

[Petronski]

A thread of its own ping.

[Nam Vet]

Thanks for the pingski

Nam Vet

[Marine_Uncle]

Lets see if the so called inquiring minds on the Hill will question why the banks all of a sudden are doing so great, markets up etc.. I don’t expect much of them. Half of them are probably on the dole in one way or another.