07-Apr-2009 12:03 RTRS TREASURY CONSIDERING RELEASING RESULTS IN SOME AGGREGATE FORM, NOT INSTITUTION-SPECIFIC RESULTS--SOURCE
07-Apr-2009 12:02 RTRS TREASURY STILL DISCUSSING HOW THE BANK STRESS TEST RESULTS WILL BE REVEALED--SOURCE
07-Apr-2009 12:01 RTRS TREASURY WANTS TO DELAY ANY PUBLIC RESULTS OF COMPLETED TESTS SO AS NOT TO COMPLICATE MARKET’S REACTION TO BANKS’ Q1 EARNINGS -- SOURCE
07-Apr-2009 12:00 RTRS U.S. TREASURY AIMING TO NOT HAVE BANK STRESS TEST RESULTS REVEALED UNTIL END OF APRIL
This seems like extremely material information to try to hide so as not to “complicate” the market’s reaction. The stress test was supposed to trigger mandatory capital recipients if they failed to meet certain criteria. I don’t see how they can release the results in some aggregate form unless they release the capital in an aggregate form – some sort of blanket capital injection across the board – perhaps at some extremely modest borrowing cost as they would force all to take it.
It seems grossly unfair to try to protect the banks by impairing shareholder ability to accurately assess the health of their investments when financial results are reported. I would expect them to be challenged on this decision. However, by revealing it via anonymous tip to Reuters, they’re basically asking for feedback – it’s not a decision yet, just something they’re considering that they think requries some opinions besides their own.