MISH: Lies, coverups, distortions, and no transparency are the norm for the Treasury Department and the Fed, so it should come as no surprise that Bank Stress Test Results Delayed For Earnings.
CNBC: 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 Tuesday.It's earnings season and banks are going to pretend they are making money (or losing less than they are), and the Treasury does not want to interrupt those lies with stress test results.
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 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.
The tests are designed to determine the depth of banks' capital holes if conditions deteriorate further. After the tests are completed, the banks will have six months to either raise private capital to compensate, or accept government funds.
But officials are worried about how the market will react to the stress test results if there is not a clear recovery path for a bank that is deemed to have a large capital need. The last thing Treasury wants to do is set off a panic, the source said.
MISH (again): Furthermore, the one thing we know for sure is the longer the Treasury delays reporting and the less detailed information the Treasury provides, the worse the actual results, regardless of what is actually reported.
April 7 (Bloomberg) -- A U.S. judge set aside the political corruption verdict that probably cost ex-Alaska Senator Ted Stevens re-election and ordered an investigation into whether prosecutors’ “shocking” conduct was criminal.
U.S. District Judge Emmet Sullivan said he had a duty to determine the “potential for obstruction of justice” by six federal prosecutors.
“In nearly 25 years on the bench, I’ve never seen anything approaching the mishandling, the misconduct, I’ve seen in this case,” Sullivan said in Washington at the outset of what he called “a dramatic day.”
Sullivan appointed a special prosecutor, Washington lawyer Henry Schuelke, to conduct the probe of the government lawyers. He ordered the Justice Department to share files with Schuelke to help him determine whether the prosecutors are guilty of criminal contempt.
The instances of misconduct are too serious and too numerous to be left to a Justice Department investigation that has “no outside accountability,” the judge said.
Public Integrity Section
Those to be investigated are William Welch II, chief of the Justice Department’s public integrity section, Brenda Morris, the principal deputy director, and four other members of the trial team. The section prosecutes public officials and government employees for corruption.
(Attorney General) Holder has declined to say whether the prosecutors committed any wrongdoing, saying he wants to await the results of an internal investigation.
The judge said he was frustrated with the apparent lack of progress in that investigation, saying, “to date, the silence has been deafening.”
“We would like to know if the AIG counterparty payments, as made, were in the best interests of the taxpayers,” lawmakers led by Cummings said in a March 25 letter to Barofsky.
Competing insurers including Ambac Financial Group Inc. and the predecessor of Syncora Holdings Ltd. reached agreements with banks such as Citigroup Inc. and Merrill Lynch & Co. to cancel similar contracts at discounts to their expected losses.
GAO Report
The Government Accountability Office said last month that the Treasury should demand that AIG seek concessions from banks as a condition of the latest U.S. aid.
“If such concessions are not considered to be in the government’s interest, the reasons should be clearly articulated and explained,” the congressional auditors said.
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