Update: Results will now be released Thursday…Market Mover Friday: Stress Test Results ‘delayed’ as Banks appeal findings…

Update: Results scheduled to be released Monday, now they say Thursday:

CNBC:

Results of the “stress tests” conducted on the nation’s 19 biggest financial institutions will be released late Thursday afternoon and include information on both the individual banks as well as aggregate data, CNBC has learned.

The results of the tests, which were conducted during April, will include estimated losses in certain loan categories as well as the banks’ resources to absorb potential losses, a source said. The source added that the information is not a solvency test….

Bloomberg:

The Federal Reserve will postpone the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.

The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.

They really painted themselves into a corner on this:

At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said this week. While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said.

By pushing conversions, rather than federal assistance, the government would allow banks to shore themselves up without the political taint that has soured both Wall Street and Congress on the bailouts. The risk is that, along with diluting existing shareholders, the government action won’t seem strong enough.

Here is the best, most NO SHXT SHERLOCK line of the piece (and the process in fact):

Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.

You mean Uncle Sam is gonna tell us these guys cant survive a financial heart attack and investors might pull their money out? The hell you say! I AM SHOCKED! BWAAAAHAAAAAA frakkin maroons…..

May 1, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Wall St. Comments off.

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