Stress Tests Threaten To Be Lose-Lose Situation For Geithner

Bloomberg:

The U.S. Treasury and financial regulators are clashing with each other over how to disclose results from the stress tests of 19 U.S. banks, with some officials concerned at potential damage to weaker institutions.

Read the whole story: Bloomberg

Comments

[LeeCalif]

12:38 AM on 04/21/2009

The guy always looks like he's ducking.

[RTIII]

07:19 PM on 04/20/2009

I want Geithner OUT...
.

[sposton]

12:16 PM on 04/20/2009

Whatever Geithner - Summers team come up with is likely to fail because they start with the wrong aim(s). They wish to save a corrupt, bloated financial structure that cannot be saved. If they started with an aim of saving our country regardless of costs to ingrained Wall Street interests then we would have a a much better chance of success.

[walk0nwalls]

01:39 AM on 04/20/2009

There's a reason that nobody likes 'The Boy Wonder's

They never live up to expectations

[PhilipTaylor]

01:05 AM on 04/20/2009

FBI warned 2004 ="epidemic" of mortgage fraud and lenders initiated 80% of these frauds
FBI Warning 2004=Early enough to averted CRISIS if Bush acted=Mortgage Fraud Epidemic
Banksters=legitimate businesses but "weap0n" to use “Control Fraud"
Banksters="Organization as 'Weap0n' in White Collar Crime." Wheeler&Rothman
Banksters=“Best Way to Rob a Bank is to Own One.” Black
Banksters=Control frauds weap0n of choice is accounting
Banksters=Control frauds=greatest financial losses of any property crimes
Control Fraud=Financial DeRegulation/DeSupervision/Perverse Compensation Systems!
Criminogenic Environment=“Big Money Crime” Calavita, Pontell&Tillman
FAKE Book Profits=Fake Accounting to "earn" bonuses and Hide Losses!
Senior Manager=Tells Credit Rater "Totally UNREASONABLE" to view loans in Derivatives
Senior Manager= Must rate without knowing contents of derivatives
Fraud=principal credit risk of nonprime mortgage lending=requires sample loan files
Fraud=Most large investors did not review the loan files before purchasing nonprime loans
Ratings Agencies=NO review of sample loan files before AAA ratings derivatives.
"AAA" Rating=indicates “NO Credit Risk”=safe US Government Bonds
Ratings Agency Lucrative Profits=Gave AAA ratings to derivatives with staggering risk
Ratings Agencies=Blind Eye to fraud=Attain Massive Profits.
Accurate Small Sample of Nonprime Loans=Reveal Toxic Waste&Accounting Fraud.
Banksters=Purchased nonprime loans, Pooled into Derivatives, and sold as AAA
Banksters=Defrauded Buyers of Derivatives as Risk Free=Blatant L I E=Toxic loans
Banksters=Even pooled "L iar's loans" with AAA ratings despite FBI warnings
Banksters=optimized accounting fraud but destroyed Bank with retained Toxic paper.
Banksters=No vital nonprime loan files so Nothing known about Owned Derivatives.
Geithner Stress Tests=useless against “NO FILES” clueless Derivatives=No Accessed Value

[robinhood1]

12:17 PM on 04/20/2009

Bush & Company were too busy trying to pass a Federal marriage amendment to worry about mortgage fraud. Now we are all going to pay the price. Blessed are the children, for they shall inherit the national debt.

[watchTVgetSTUPID]

10:00 PM on 04/19/2009

Geithner is a Lose Lose situation for Obama, for the dollar, for the economy, for America.

The Face of the Looter

[wanked]

07:23 AM on 04/20/2009

obama just loves him. Doesnt want to hurt his feelings by firing him....he's so nice.

[PhilipTaylor]

08:13 PM on 04/19/2009

Economic Recovery = Main Street Recover ### NOT Wall Street Recovery

Wall Street Recovery = IRRELEVANT RECOVER for THE ELITES

Main Street Recovery = Government Credit Flows to Main Street = MUST BE OBAMA FOCUS!
________________________________________________________________

Geithner/Summers = CLEARLY States he is NOT worried about Main Street Recovery

Geithner/Summers = Main Street Recovery will happen down the line!

GEITHNER/SUMMERS ONLY PRIORITY = MY BUDDIES ON WALL ST! = LOVE "TRICKLE DOWN!"

Geithner/Summers = Main Street can WAIT!

OBAMA CHANGE = "TRICKLE UP" = Credit Flows at "FAIR RATES and FEES" to Main Street!

[themodernleader]

04:06 PM on 04/19/2009

SupremeIdiot. I wrote a provocative statement to your question. It was 75 words too long. I pushed the wrong button and the whole damned effort disappeared. To hell with it. Go to my station and read my comments. You should discern my concerns and arguments.

[mitsie]

03:19 PM on 04/19/2009

Give me a freaking break, why in h*ss does every title have to be so negative? They disagree on how to release the info and I agree, they sure don't want people to pull out of banks and thus the smaller banks fail.

[TJCole]

02:34 PM on 04/19/2009

Nationalize these corrupt insolvent amoral if not immoral banks...why are we following Japan's disastrous blueprint and not Sweden's...

We have banksters still thinking almost only of the banks, and not what's best for America's future..!

[schatsie]

01:00 PM on 04/19/2009

Elizabeth Warren is looking better and better... Remember all the meetings in NYC were on Geithners turf, he played along with Walll Street. (I also want Dean to get a position)

[AngieMom57]

01:15 PM on 04/19/2009

Interview with David Korten: "Agenda for a New Economy: From Phantom Wealth to Real Wealth"

http://www.democracynow.org/2009/1/26/david_korten_agenda_for_a_new

[Hailmaryyy]

12:05 PM on 04/19/2009

The stress test is turning into another failure just like the TARP.

"The Treasury’s TARP program is failing to enhance lending to both businesses and consumers. The Wall Street Journal has reported that “in a monthly snapshot of lending by the 21 largest banks receiving Troubled Asset Relief Program funds, the Treasury said credit being offered fell 2.2% across all commercial-lending and consumer-lending categories in February, compared with the prior month.” The purpose of the TARP funds was twofold: to stop the panic that engulfed the stocks and bonds of financial companies and to regenerate access to affordable credit for both businesses and consumers. The TARP has succeeded in buying time and ending the panic. However, it has failed to revive access to affordable credit. This is a serious problem because in recent years the shadow-banking system has supplied up to 75 percent of the credit in the U.S. The shadow-banking system is on life support, and parts of it, like the non-government asset-backed securities market, practically ceases to exist. The hope was that the banks could absorb much of the need for new credit. While that goal is still attainable, it is not attainable through the TARP."

http://www.escapethenewgreatdepression.com/

There is no way any bank that fails the stress test can raise private capital. Why bother giving them 6 months. The bankers worried that 10% unemployment may happen, not necessarily will happen, are from the zombie banks.

[mitsie]

03:20 PM on 04/19/2009

What is your plan?

[sonofsamphm1c]

04:24 PM on 04/19/2009

How can the stress tests be a failure? The 19 banks have been injected with gobzillions in cash. They have also been stacking up loads of their own cash that is coming in every month in the form of payments on the large number of loans within the "toxic" assets that are still being paid just like clockwork every month.

You guys deem the stress test a failure because they will fail to produce the results the Kluglodytes demand. Take a measure of the paranoia in that. Krugman, rather than accept he has been wrong about some of this stuff, instead squiggles away with the baseless assertion that the stress tests will be rigged to allow no failures.

Really? What proof of that does he have? His proof appears to be - the only way the great Nobel winner can wrong is if Obama- Geithner cheat on the tests. Who the H does this smuck think he is?

[indiamerican]

11:56 AM on 04/19/2009

Geithner, Summers and team Obama are doing a good job. Only two years from now will people realise how fortunate we all are to have thinking people at the helm. In short order they have converted what looked like a sure Depression to a recession and will soon stem even that. For all those people who are so angry with the bankers and wall streeters for their compensation packages please remember none of you spoke up when the markets were going up and things looked good. Team Obama is working on capping compensation and putting up legislation that makes sure that no single corporation gets too big to fail. Hopefully Repubs will not change the laws again in the future. Hopefully we will all be more alert to their shenanigans in the Congress.

[benwha]

01:05 PM on 04/19/2009

Blankfein, is that you?

[paixa3]

11:04 AM on 04/19/2009

It is much past the time for Bernanke, Paulson, Summers and Geithner to be OUTED.

[Jazzman323]

10:39 AM on 04/19/2009

Not paying his taxes was a lose lose for Geithner.