SubscribeDaily Futures Commentary April 24, 2009
Friday, April 24, 2009
Today is “Stress Test Day”. The 19 major banks analyzed by the Fed will receive the preliminary results of the recent stress tests performed by the top bank. These results will let the banks know what they need to do to achieve stability and where they are at risk. Some will be told they need capital now. Others will be informed of future situations where they would need to shore up capital requirements.
Today only preliminary results will be released with the actual results coming out on May 4. Of utmost importance is secrecy at this time. The Obama Administration does not want the release of these preliminary reports leaked in order to prevent excessive speculation or a run on a bank.
This 10-day period before the release of the actual numbers is to prevent a shock to the banking system. Of course speculation over who is sound and who is in trouble may plague the markets from now until May 4, but that is why we have markets. There seems to always be someone willing to take the risk.
If the numbers are …
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