Can’t stand the suspense? ‘Stress test’ data due Thursday
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Our long national ‘stress test’ nightmare is nearly over. Mark your calendar.
From the Associated Press:
The Federal Reserve will release ‘stress tests’ results for the nation’s biggest banks on Thursday, according to a government official. Deliberations between banks and regulators about the tests’ results pushed back the release date, which initially was expected to be earlier in the week. In addition to an overall snapshot of the health of the 19 large banks being assessed, the Fed will provide detail about individual banks, according to the official, who spoke on condition of anonymity because of the sensitive nature of the matter. The Fed will describe the resources banks would need to absorb losses on certain types of loans and investments under adverse economic conditions.
Wouldn’t it be great if the stock market could stop being obsessed with the banks? Maybe we’re starting to see that: The BKX index of 24 major bank shares was down 1% at about 11:35 a.m. PDT today, but the Standard & Poor’s 500 index was up 0.5%.
Since April 17, the BKX is down 12.7% while the S&P 500 is up 0.9%.
We already know the government won’t allow any of the 19 banks to fail. The only issue is whether they’ll be forced to take more taxpayer money to stay afloat.
-- Tom Petruno